Elanor Investors Group recently purchased its first retail centre in Western Australia – Riverton Forum – and has appointed JLL to provide retail property management services for the centre.
Formerly Stockland Riverton Shopping Centre, Riverton Forum is a dominant, convenience-based shopping centre situated on a 6.3-hectare site in a prime metropolitan Perth location, 11km South-East of the Perth CBD.
Riverton Forum is 98% occupied, anchored by major tenants Woolworths and Big W and contains 58 specialty stores. The property is easily accessible, situated on the prime arterial corner of High Road and Willeri Drive with exposure to 7.9 million vehicles annually.
Elanor Investors Group acquired Riverton Forum at a compelling 7.25% capitalisation rate, which is an impressive 100 – 125 basis points higher than recent comparable Perth metro shopping centre transactions.
Elanor Investors Group Head of Retail, Development & Mixed Use, Matt Healy said: “Riverton Forum is an outstanding, defensive investment that generates strong income from a highly productive Woolworths and Big W. The consolidation of the centre’s everyday needs offering will further enhance the Fund’s superior investment returns.”
Riverton Forum is a dominant, convenience-based shopping centre situated on a 6.3-hectare site in metropolitan Perth
Colliers’ Lachlan MacGillivray, Managing Director Asia Pacific Retail Capital Markets and Richard Cash, State Chief Executive Western Australia, facilitated the deal in a highly competitive EOI campaign.
“High-quality sub-regional shopping centres are highly sought after in the current market. Bids were received from across Australia with a combination of private and institutional capital participating,” MacGillivray said. “The spread between sub-regional yields and borrowing costs still offers buyers a healthy buffer and demand for this sub-sector has stayed strong.”
“Major refurbishments and upgrades have recently been implemented at the centre, including an extensive refurbishment to Woolworths and the addition of an alfresco dining precinct.” Cash added. Coupled with the landmark 6.31-ha site, low site coverage of 31.4% allows and a range of future value-add opportunities, the centre ticked all the boxes that astute investors were looking for.”
The successful rebranding to Riverton Forum included an overhaul of the centre’s name, logo and style guide as well as a new look website. The new branding is inspired by the centre’s location with a modern feel and is designed to stand the test of time, accompanied by a dynamic and vibrant visual language for use across marketing campaign development.
The appointment of JLL’s Property and Asset Management division commenced on the 4th of March 2023.
JLL’s Head of Retail Property Management – WA, Karen Draper said, “We are excited to be appointed to manage Riverton Forum and look forward to building a strong partnership with Elanor Investors Group to manage their first retail centre in Western Australia.”
Elanor is a market leader in delivering strong investor returns from repositioning retail real estate assets, having successfully executed numerous repositioning strategies across Australia.
Elanor’s value add proposition includes potential from divesting non-core, freestanding pad-sites on favourable exit values, as well as capitalising on the emerging demographic by remixing discretionary fashion and accessories tenants to fresh and Asian food tenancies.
The acquisition of Riverton Forum exemplifies Elanor’s focus on investing in high-quality real estate and unlocking value through innovative and highly active asset management.
