Elanor Investors Group (ASX: ENN) has over $2 billion of assets under management. Elanor’s market-leading capability in originating retail value-add opportunities and executing the repositioning strategies for these assets is delivering superior risk-adjusted returns for investors. Our latest offering, Warrawong Plaza Fund, is forecast to deliver, over the five year hold period, an average distribution yield of 8%+ p.a. and a total return of 12%+ p.a.
Michael Baliva, Co-Head of Real Estate & Fund Manager, Retail
Matt Healy, Head of Retail, Development & Mixed-Use
INVESTMENT SPECIALITY : Repositioning of Retail Real Estate
Elanor’s market-leading capability in originating retail value-add opportunities, and executing the repositioning strategies for these assets, is delivering superior risk-adjusted returns for investors. Elanor has a strong track record of repositioning retail real estate with an average return on realised investments of 25% p.a.
UNIQUE INVESTING METHODOLOGY
Informed by a detailed review of the Australian retail landscape, focusing on non-discretionary, every day needs focused shopping centres.
Prevailing market conditions provide the opportunity for:
- Proactive and targeted acquisitions of assets which meet strict investment criteria
- Unlocking the value of high quality real estate, realising its highest and best use
- Generating outsized risk-adjusted returns
Elanor’s market-leading capability in originating retail value-add opportunities and executing repositioning strategies has delivered an average of 25% p.a. IRR on realised investments.
Riverside Plaza (NSW) and Clifford Gardens (QLD), our most recent retail investments, were acquired at an average capitalisation rate of 7.9%. At these assets, we are introducing new, non-discretionary, everyday needs offerings to significantly improve the defensiveness of the assets’ cash flows. Following the execution of our repositioning strategies, these assets will be well sought after, as evidenced by our recent divestment of Auburn Central (NSW) in December 2020 at a capitalisation rate of 5.75%.
A combined 45 years’ of experience in real estate management and development, led by:
Michael Baliva, Co-Head of Real Estate and Fund Manager, Retail
- 25 years’ experience in the Australian and international real estate funds management and finance industries
- EY Chartered Accountant for 8 years specialising in the real estate funds management
Matt Healy, Head of Retail, Development and Mixed-Use
- 20 years’ experience in major real estate development, investment management, and operations
- Senior roles at Westfield Group, Lend Lease, and Blackstone’s asset management arm, 151 Property Group
The Warrawong Plaza Fund is an unlisted retail real estate investment offering. The business plan, which is already well progressed and de-risked, will position the asset as a non-discretionary, everyday needs centre that generates defensive cash flows. This will be executed by the replacement of a Discount Department Store with a brand-new Supermarket and introducing more everyday needs offerings.
The Fund is forecast to deliver, over the five year hold period, an average distribution yield of 8%+ p.a. and a total return of 12%+ p.a.
- $140M purchase price / 7% initial yield
- Significant 7 ha site in a prominent gateway location
- 8.0%+ p.a. average distribution yield
- 12.0%+ p.a. total return