SCV and Eureka Care creating a new force: 66 villages

SCV [operator of Village Life and SunnyCove villages] has entered into a binding agreement to purchase 100% of shares of Prime Trust’s Eureka Care Communities with 12 rental villages (5 in SA, 6 in QLD, 1 in NSW] for $400,000. The deal is to be completed next Monday 7th. Eureka’s MD, Mike Bosel, will head up the new group that will comprise 48 rental villages and 18 traditional villages. Bosel and his team have delivered an operating profit for his 12 Eureka villages for the 2010 year to March 31 of $700,000 (subject to due diligence verification). SCV has also turned the corner and indicated a net profit after tax of $190,000 to March 31. This compares to a loss of $4.9 million for the same period last year. Smart money is involved in this evolution. Watch this space.