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Medical technology & services

Eureka Group Holdings continues retirement village acquisition spree

Eureka Group Holdings (ASX:EGH) will acquire a 51-unit village in southeast Queensland for $3.215 million, to be settled in late January 2017.

This will be the company’s fourth acquisition for financial year 2017.

Importantly, the village has a good long-term historic occupancy and is expected to generate an annual EBITDA of about $400,000.

The village occupancy and financial performance are underpinned by the demand for retirement accommodation and demographic profile of this growing regional centre.

The acquisition will add to an already strong cluster of Eureka villages in South East Queensland/Northern New South Wales.

The company is focused on providing rental accommodation and associated care to independent retirees dependent on Australian Government pension and rent assistance.

Eureka invested $43 million for 13 village acquisitions settled during financial year 2016.

Incidentally, the company has been awarded ‘Most Outstanding Over 50s Rental Housing Management Group in the World in 2016’ at The Global Awards in London.

At the same ceremony, Eureka’s executive chairman Robin Levison was awarded The Most Outstanding Rental Housing Leader in the World in 2016.

The company reported a revenue of $24.2 million for the year ended 30 June 2016, up 98% compared to the previous year.

Significantly, Eureka earned statutory net profit after tax of $10.5 million for FY2016, up 237% compared to FY2015.

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