Following a strategic review, Elanor Retail Property Fund (ERF or Fund) is focusing on non-discretionary value-add retail assets and is conducting a structured sales program for the Fund’s Income assets. Elanor Retail Property Fund have exclusively engaged Savills National Retail Investments team to divest three shopping centre assets – Manning Mall located in Taree, New South Wales and Moranbah Fair and Gladstone Square in Queensland.
Established in 2009, the ERF Group currently manages more than $1.5 billion of assets across Australia and New Zealand.
Glenn Willis, Managing Director and CEO of Elanor Investors Group, said “ERF will focus on retail assets that provide opportunities for high, risk-adjusted total returns from realising the highest and best use via a repositioning of the centres’ retail tenant mix and/or unlocking the assets’ development potential.”
According to agents Savills’ Peter Tyson, Steven Lerche and Jon Tyson, the three shopping centres will attract significant investor interest in a market which continues to show a deep appetite for non-discretionary retail investments.
“All three assets offer extremely strong investment attributes underpinned by high trading non-discretionary supermarket sales that enjoy excellent market share in each of their respective markets,” Tyson said.
Tyson said the timing of the offering sits well with National retail property transactions currently running at over $6 billion a year, according to Savills’ research.
“The most popular retail asset class in the market remains Coles or Woolworths anchored neighbourhood centres due to their resilient predominantly non-discretionary spend focus, underpinned by food and service tenants and their liquidity in the marketplace,” he said.
Savills Research have identified that investment activity has been bolstered in recent months by the lowest interest rate environment on record as investors chase stable long term returns well above long term bond rates.
Each centre features around 80% of GLA leased to national tenants. Manning Mall is an enclosed 10,745 m2 shopping centre located in the CBD of Taree, New South Wales. Anchored by a strong performing Coles supermarket currently in turnover rent and a mid-size Target, the centre comprises 29 specialty shops and four kiosks focused on non-discretionary goods and services.
“Manning Mall services an expansive trade area on the Mid-North Coast with a trade area population of over 56,000 forecast to grow to over 64,000 by 2036,” Tyson said.
Moranbah Fair
Moranbah Fair is a fully enclosed 7,052m2 neighbourhood shopping centre, located in the CBD of Moranbah, Queensland. The fully leased centre is anchored by a strong trading Coles supermarket, Target Country and a KFC, along with 12 specialty shops, two kiosks, six offices and a KFC drive-through pad site. Tyson said that the centre has absolute dominance in its catchment, being the only major retail and supermarket offer servicing Moranbah and the surrounding Isaac Regional Council area.
“Moranbah currently services an equivalent full time population of over 33,000. Moranbah supports over 27 operational coal mines, producing most of Queensland’s high quality premium metallurgical coal exports used in steel production, as well as strong beef and agricultural industries,” Tyson said.
The recent approvals for the $2.8 billion Carmichael Mine by Adani Mining, will deliver some 10 million tonnes of coal each year, including a new 200 kilometre rail project and 185,000 megawatt solar farm.
Gladstone Square is a single level 6,861m2 neighbourhood shopping centre located in the CBD of Gladstone, Queensland. Anchored by a Woolworths supermarket leased until 2036, the centre includes a Reject Shop and 27 specialty shops focused on non-discretionary goods and services.
“Gladstone Harbour is home to the fifth largest multi-commodity port in Australia exporting alumina, aluminium, cement products and ammonium nitrate and is the world’s fourth largest coal export terminal,” Tyson said.
Gladstone Square
The recently expanded harbour allows increased exports of LNG and each year 50 million tonnes of coal passes through the port, making up 70% of the total exports. The Gladstone economy is expected to benefit from a range of major infrastructure projects over coming years, including the new ‘East Shores’ tourism cruise ship terminal, expanded hospital facilities, duplicated shipping channels to accommodate larger vessels, a new $2 billion island resort project, a new ammonia-to-energy plant and a possible new steel mill.
Such projects are expected to bolster the existing Gladstone trade area population of over 36,000 to over 41,000 in coming years, doubling retail expenditure to more than $1 billion in the same timeframe.
