Tweed council approves resort split

A FORMER northern New South Wales holiday resort will be sold off in pieces, with Tweed Shire Council approving the strata-titling of 60 units at Royal Terranora Resort.

Listed Gold Coast retirement village operator Eureka Group Holdings said they had accepted conditions on the approval including completion of an internal driveway.

“This is an important milestone for the company and reflects the considerable amount of work and positive co-operation invested with the Tweed Council,” the company said in a statement to the stock exchange.

“Once these works and the other conditions have been certified, Eureka will apply for the individual property titles to be issued.

“Once in hand, Eureka can move to a settlement of existing contracts that are in hand.

“The marketing campaign for the sale of the balance units is also ready to be initiated.”

The company has previously said it hoped the Terranora project would realise $14 million from the sale of units at the resort.

Eureka purchased the Bilambil Heights property for $7 million in 2015.

The approval is good news for the company after it reported a 37 per cent plunge in net profit following a surge in operating costs and asset writedowns.

The Southport-based company, which owns and/or manages 36 retirement villages around Australia, said its fullyear profit was $6.54 million, down from $10.46 million in FY16, although both revenue and occupancy were up.

Eureka Group shares were trading as high as 34.5 cents yesterday after a close on Friday at 32.2 cents.