Eureka Makes $18m Move into Tassie Aged Care

A Queensland retirement accommodation heavyweight has purchased five new retirement villages for $18 million with a group of private investors.

The purchase marks the first foray into the Tasmanian market for the ASX-listed Eureka Group Holdings, according to chief executive Jeff Weigh.

“We see strong opportunities in the low-cost accommodation sector for seniors as the population continues to age with many seniors coming up to retirement age, relying on the aged pension,” Weigh said.

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“The purchase strengthens our position in the southern states and leverages our operating base in the region, while generating additional property management fees.”

Eureka Group, which owns Couran Cove and the former Royal Terranora Resort, will take on two villages located in Hobart, two in Launceston and one in Davenport, comprising a total of 254 units.

The company acquired the Tasmanian villages from rival aged-care group Ingenia.

The acquisition includes Eureka’s portfolio has now expanded across Australia with 32 properties, including 11 villages in South Australia and Victoria, and independent villages throughout Queensland and New South Wales.

The group has a further nine villages under management.

The transaction is due for settlement in April 2018.