Elanor Investors has picked Auburn Central in NSW for $68 million, its second major retail transaction since listing in July last year.
The deal comes as the Auburn area is undergoing a process of urban densification, with a variety of high-rise residential apartment developments under construction and proposed.
Constructed in 2004, Auburn Central forms the "town centre" of a significant mixed use development that benefits from 450 apartments located above it. The site is anchored by strong traders Woolworths and Big W, both leased until 2024. The anchor tenants are complemented by 46 specialty stores with very low vacancy and strong representation by national chain and local retailers. It is estimated that the centre receives around 10.8 million people in foot traffic each year.
ENN CEO Glen Willis said, "We are very pleased to have secured Auburn Central, we believe the centre represents an exciting opportunity for investors in the Auburn Central Syndicate. The transaction is the third funds management initiative following our IPO in July 2014 and increases ENN's owned and managed assets to over $400 million."Michael Baliva, ENN's Head of Real Estate, said the centre will provide Elanor Investors with strong income and capital growth opportunities.
"Auburn Central is a mature shopping centre generating stable cash flow by providing convenient access to non-discretionary everyday goods and services for its densely populated and growing trade area," Mr Baliva said.
Simon Rooney of JLL negotiated the sale on behalf of Holdmark Property Group, reflecting a fully leased yield of 8.04%.
Auburn Central is located on the corner of Harrow Road and Queen Street directly opposite the Auburn Railway Station in Sydney's metropolitan area. Located approximately 20 kilometres west of the Sydney CBD and approximately 6 kilometres from the Parramatta CBD.