Eureka Group Holdings has awarded a construction contract for the $11 million expansion of its Brassall rental village in South-East Queensland.

Verve Construction will build the 51 new two-bedroom homes at Brassall, almost doubling the village’s size from 55 to 106 dwellings, as well as refurbishing existing communal facilities such as the community room and swimming pool.

“The Brassall expansion represents a compelling development opportunity delivering a quality affordable rental product for seniors, with limited competition in a strong population catchment,” the rental village operator told the ASX.

“The development remains consistent with Eureka’s strategy to grow its core operations through acquisition and build-to-rent development of greenfield and brownfield sites in the seniors’ independent rental living sector.”

Construction is slated to begin in late January or early February, with four stages of construction to be completed by the end of this calendar year; when finished, Eureka estimates that the total cost of the village will be $18.6 million including acquisition and development costs.

Eureka last year announced the purchase of two Ingenia rental villages in NSW and Queensland alongside the Brassall expansion.