Australia's Eureka jumps on $4.5 mln rental management contracts

Eureka group

05/11/2021 03:41

** Property manager Eureka Group's  EGH.AX  shares rise as
much as 6.2% to A$0.690, set for best day since March 29 
    ** EGH enters into conditional contracts to buy management
and letting rights (MLRs) for six villages that currently
provide affordable rental accommodation for seniors in
south-east Queensland 
    ** Says deal for MLRs and associated real estate is A$6.1
mln ($4.51 mln), excluding transaction costs; will be earnings
accretive from year one
    ** Expects annual return on investment (prior to funding
costs) of 13% after costs 
    ** Company adds deal will provide an opportunity to increase
EGH's units under management in co's portfolio and increase its
presence in south-east Queensland 
    ** More than 175,000 shares have changed hands, about 1.1
times their 30-day average 
    ** Stock up ~44.4% so far this year, as of last close 
    



($1 = 1.3537 Australian dollars)

 (Reporting by Upasana Singh in Bengaluru)
 ((Upasana.Singh@thomsonreuters.com))