Retirement rental operator Eureka has signed a $5.1 million conditional Heads of Agreement (HoA) to purchase a motel in Bowen, Queensland, with the intent of converting it to a rental village.

The ASX-listed company has been angling to change the Port Denison Motor Inn (pictured) – which was converted to short-stay accommodation during a mining boom – back into its original purpose as a retirement village, saying its 46 units will increase the amount of affordable seniors’ rental living in the Whitsundays region.

“The village presents to a high standard with community facilities in place to enable an economic transition to an independent living seniors’ rental village. Vacant land adjacent to the property may facilitate future expansion of the village.

“The acquisition is consistent with Eureka’s strategy to acquire quality, value-add assets, to grow its independent rental retirement living portfolio,” the operator said.

The deal – slated to close in April 2022 – is dependent on Eureka receiving approval from Whitsunday Regional Council.