Elanor Investors Group new managed fund, the Bluewater Square Syndicate, has acquired a shopping centre in the Brisbane suburb of Redcliffe for $55.25 million with a two year rental guarantee on vacancies.
Elanor chief executive Glenn Willis said there was significant opportunity to expand the shopping centre and retail options in Redcliffe, as the property has a favourable zoning and 27 metre height limit across the majority of the 1.356 hectare site.
"Following the announcement of the establishment of the Elanor Metro and Prime Regional Hotel Fund on 21 August 2017, the establishment of Bluewater Square Syndicate takes ENN’s owned and managed portfolio of assets to approximately $990 million.
"This is expected to exceed $1 billion dollars following ENN’s co-investment in each of these new managed funds.” Willis said.
Constructed in 2008, Bluewater Square is a 10,004 square metre neighbourhood shopping centre in an increasingly densifying precinct within the Brisbane metropolitan area -- 20km from the Brisbane International Airport and 30km from the Brisbane CBD.
The centre is anchored by a 3,941 square metre full-line Woolworths supermarket leased to September 2028. The centre’s sales are growing at 3 per cent per annum with a weighted average lease expiry of 6.0 years.
The Woolworths supermarket is complemented by two mini majors -- Healthworks Gym and a large Terry White Chemist -- and over 30 specialty retailers predominantly focussed on providing services and non-discretionary focussed food offerings. An upper level of office suites is tenanted by three law firms, a medical practice and the Redcliffe Electoral Office.
The acquisition of Bluewater Square represents a passing yield of 7.0 per cent which compares favourably to prevailing Brisbane Neighbourhood shopping centre yields.
“Bluewater Square is a modern shopping centre generating stable cash flows by providing convenient access to everyday goods and services for its local trade area," Elanor head of office real estate Michael Baliva said.
"The Bluewater Square Syndicate provides its investors with strong income returns and significant opportunities for capital growth," he said.
Settlement of Bluewater Square is expected to occur in October 2017.
Image courtesy Anthony John Group