Cameron Taylor, CEO of the Brisbane-based rental village provider, has explained why his business model is a success.
“The benefit of us from a business model point of view is 95% of our residents actually live on the pension. So, they don’t have access to a lot of savings,” Cameron told Finance News Network.
“They most generally don’t own their own home, so they’ve actually been in rental accommodation. They’re looking for that affordability, so they're pension-based. And so, we structure our rent to make sure that they can have a nice single-unit bedroom, three meals a day in the safety of a village.
“And they survive and live on the pension with money left over for medicine, car, treats, whatever they like. The advantage for them is that we pay all the rates and the water.
“We have got solar on to 15 of our villages. So, in most cases, residents pay a fraction of what they would normally do in electricity and, in some cases, they pay no electricity …. We’ve created this really nice value proposition for our residents.”
Eureka reported a HY23 profit after tax of $7.75 million on 28 February. The group has a market capitalisation of $135.17 million and 2,700 units.
Cameron said Eureka Group, which is doubling the size of its village in Brassall, Ipswich, 40km southwest of Brisbane’s CBD, aims to be solely a rental village operator.
See Cameron’s interview in full below:
