Elanor Investors Group (ASX: ENN) has announced the establishment of a new managed fund, the Riverside Plaza Syndicate (“Syndicate”). Consistent with ENN’s strategy to reposition town centre retail real estate, the Syndicate has acquired Riverside Plaza, a Coles supermarket anchored shopping centre, located in Queanbeyan, NSW, for $60 million from Vicinity Centres managed Vicinity Enhanced Retail Fund (VERF).
Located in the growing south-eastern Canberra corridor, Riverside Plaza benefits from a prime town centre location, superior car parking and a significant government employment base. The centre generates strong, stable income from its convenient everyday goods and services offering. The asset also has significant value-add opportunities from the repositioning of the vacant Target discount department store tenancy and the realisation of non-core surplus land.
Situated on a 3.7 hectare site, the centre’s lettable area of 21,525m2 is anchored by a strongly performing Coles supermarket, complemented by more than 45 specialty non-discretionary focussed goods and services retailers. The centre also benefits from office tenancies predominantly leased to government agencies.
The acquisition of Riverside Plaza reflects an attractive passing yield of 7.9% p.a. and a capital value of $2,787 per square metre of lettable area.
ENN CEO, Glenn Willis, said: “We are pleased with the strong investor demand for this fund. The acquisition of Riverside Plaza exemplifies our strategy of acquiring well located town centre retail real estate where we identify opportunities to unlock value through repurposing the real estate to deliver strong returns for our capital partners. We see this as an area of significant growth potential for the Group.”
ENN Co-Head of Real Estate, Michael Baliva, added: “Riverside Plaza has significant value-add potential given its town centre location and the opportunity to reposition a former Target tenancy into essential service providers such as medical and health. We look forward to applying our retail repositioning capability to this acquisition and building on our strong track record of successfully repositioning town centre retail real estate.”
Elanor Investors Group is an investment and funds management business with more than $1.9 billion in assets and funds under management across Australia and New Zealand. The Group are also doing some exciting repositioning projects at Auburn, Fairfield, Waverley Gardens and Tweed Mall.
Elanor’s investment management objective is to acquire and unlock value in real estate assets that provide strong income and capital growth potential.