Elanor Buys Mall for $85m in Sydney's West


Elanor Investors Group has purchased the Neeta shopping centre in Fairfield for $85.3 million on a passing yield of 7.8 per cent.

The purchase price, of $3,450 per square metre of lettable area, is well below its replacement cost.

Situated on a 2.2 hectare site, the centre is anchored by a Woolworths supermarket and a Big W discount department store, located in the growing western Sydney metropolitan area, and 300 metres from Fairfield’s train station.

The ASX- listed Group established a new managed fund, the Fairfield Centre Syndicate, which acquired the sub-regional shopping mall.

Elanors Investors Group will co-invest in up to 20 per cent of the Syndicate alongside domestic institutional and private capital partners.

Related: Elanor Offloads Permit-Approved Merrylands Site for $36m

Elanor’s Fairfield purchase follows recent acquisition of Waverley Gardens shopping centre in Melbourne.

“Neeta City is a convenience-based centre providing access to everyday goods and services. The centre presents significant opportunities to add value through repositioning,” Elanor said in its ASX- statement.

Elanor CEO Glenn Willis said the investment was part of its strategy of acquiring high-quality real estate and “unlocking value through its active asset management approach”.

“We have a track record of successfully repositioning assets like Neeta City to deliver strong returns for both our capital partners and our security holders,” Willis said.

The Group’s Michael Baliva said Neeta City has “significant value-add potential” given its Fairfield CBD location, ample car parking and opportunities to ‘right size’ the retail offer to introduce more productive commercial uses.

Related: Elanor Picks Up Perth Office Block for $125m

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