This article is from the Australian Property Journal archive
FUND manager Elanor Investors Group has offloaded the fully leased Big W-anchored Hobart shopping centre Glenorchy Plaza for $19.75 million, just below book value.
Elanor had held the 8,276 sqm property, located eight kilometres north-west of Hobart, through its Elanor Property Income Fund. Its book value was listed at $20.6 million at its half-year results, on a 7.50% capitalisation rate, down from $21.5 million six months earlier.
The 2005-built two-level centre has a short weighted average lease expiry of 2.1 years. It is anchored by one the larger Big W stores in Tasmania, supported by 14 specialty tenancies that include Flight Centre, Radiology Tasmania, Australian Hearing, Hobart Pathology, and a mix of local retailers.
“The centre is well located next to the Woolworths anchored Glenorchy Central which works synergistically to drive foot traffic between the two centres,” according to Elanor Investor Group.
Knight Frank managed the sale.
Elanor Investors Group acquired Glenorchy Plaza in 2015 for $18.5 million on a fully leased initial yield of 8.20%, through the Elanor Retail Property Fund.
It said the sale of Glenorchy Plaza would not impact the proposed initial return of capital to investors.
“A further return of capital to securityholders is anticipated following the settlement of Glenorchy Plaza from the net sale proceeds after repayment of debt and payment of transaction costs,” it said. Settlement is expected in June.
