Company buys Bay retirement village in $13m spending spree

A HERVEY Bay retirement village has been purchased by Eureka Holdings Group Ltd.

In a statement to the ASX, the company confirmed its purchase of two independent seniors' living villages in Cairns and Hervey Bay were now unconditional.

"Regulatory approval for the change in scheme operator for the Hervey Bay village, under the Retirement Villages Act, has been received," the announcement read.

Settlement of the two villages, comprising 123 units, is expected in November 2020.

In a previous announcement, a statement to the ASX said the 53 unit Hervey Bay village was currently operated as a mix of rental units and deferred management fee units.

"This acquisition gives Eureka a presence in the growing Hervey Bay retirement region and will allow Eureka to bolster its senior independent living rental offering over time.

"Total consideration for the acquisitions is $13 million and the villages will be earnings accretive from year one with no additional support overhead costs required.

"Payment of $2.5 million of the consideration will be deferred for two years from settlement."

The Chronicle has contacted Eureka Holdings Group to confirm which retirement village has been purchased.