Elanor Investors Group (ENN) has announced the establishment of a new managed fund, the Clifford Gardens Fund in partnership with Savills Investment Management. The Fund will acquire the Clifford Gardens shopping centre for $145 million.
The Fund is a joint venture with Savills Investment Management, a global real estate investment management firm, co-investing alongside Elanor’s domestic institutional and wholesale capital partners.
“Elanor Investors Group, on behalf of our capital partners, is pleased to have acquired Clifford Gardens shopping centre,” said Matt Healy, ENN’s Head of Retail, Development & Mixed Use. “This dominant dual supermarket anchored, every day needs centre is located in Toowoomba, a region set to experience unprecedented economic activity and growth. We look forward to revitalising the centre through the addition of alternative, non discretionary usages, leveraging the sites prominent and convenient location to add value for our investors.”
The acquisition of Clifford Gardens reflects a yield of 7.9% pa and $5,244 per m2 of lettable area and grows Elanor’s assets and funds under management to more than $2 billion. The deal was agreed “off-market” and below the price that Blackstone paid in 2016 ($188.5 million).
“We are delighted to have secured this high investment quality property for our capital partners,” said Michael Baliva, ENN’s Co-Head of Real Estate. “Clifford Gardens has significant value-add potential, given the Toowoomba region’s substantial infrastructure projects in progress, the centre’s prominent CBD location, and the opportunity to introduce a health, medical and essential services precinct at the property. Additional opportunities exist to unlock value from the underutilised land on the extensive 9ha site. Our strategy is focused on enhancing both the income and capital value of the property for our capital partners.”
ENN CEO, Glenn Willis, said: “This investment exemplifies Elanor’s strategy of acquiring high quality real estate where we see the opportunity to unlock value through our active asset management approach.
“The recent successful repositioning of the Auburn Central shopping centre highlights our market leading capability in this sector and continues our outstanding track record of transforming sub-regional shopping centres into strongly performing, non-discretionary focused retail assets to deliver strong investment returns for our capital partners,” Willis said.
“Importantly, this acquisition in partnership with Savills Investment Management continues to demonstrate the broadening of Elanor’s offshore institutional capital partnerships. These partnerships will increasingly drive Elanor’s growth in assets under management.”
Savills Investment Management’s Head of Australia, Greg Lapham, said: “We are very pleased to be acquiring Clifford Gardens with our partner, Elanor Investors Group. We look forward to unlocking value for both of our investor groups by combining our offshore retail experience with Elanor’s proven ability to reposition assets of this type.”
Located in Toowoomba QLD, Australia’s second largest inland city, Clifford Gardens is a dual supermarket and discount department store anchored shopping centre. The centre benefits from its long-standing defensive position within the market, its superior convenience-based offering compared to its competition and its extensive on-grade car parking. The centre provides convenient access to everyday goods and services and presents significant opportunities to add value by repositioning the tenancy mix with superior non-discretionary uses. Furthermore, the site presents the opportunity to realise value from non-core land.
Situated on a prominent 9ha site, the centre’s fully enclosed 27,651m2 lettable area provides convenient access to wide ranging retail amenity with 89 specialty tenancies focused on the provision of non-discretionary goods and services.