This article is from the Australian Property Journal archive
ELANOR Investors Group will partner with global real estate investment firm Heitman to acquire the Waverley Gardens shopping centre in Melbourne’s south-east from Blackstone for $178 million.
Domestic institutional and wholesale capital partners will also invest in the Waverley Gardens fund.
The 39,554 sqm sub-regional centre is anchored by a strongly trading Woolworths, Coles and ALDI supermarkets, and two discount department stores, and is on a 106,000 sqm site on the corner of Jacksons Road and Police Road, and near the intersection of the Monash Freeway and Eastlink.
JLL’s head of retail investments for Australasia, Simon Rooney negotiated the deal.
“We continue to see demand for retail assets where investors can progressively add value and drive enhanced returns, either via intensive asset management and/or development,” he said, adding that Waverley Gardens offers an attractive and secure income return and provides future mixed-use development potential.
“Investors are attracted to the high population growth in Victoria which is currently running at 2.2% per annum, now the strongest nationally. The state provides sound investment fundamentals with the economy underpinned by broad-based growth driven by strong growth in household consumption, tourism, infrastructure spending and business investment.” Rooney added.
Elanor’s co-head of real estate, Michael Baliva, said the retail investment market is currently presenting opportunities to acquire shopping centres with strong underlying real estate value.
“Waverley Gardens is located on a significant site in Melbourne’s south-eastern growth corridor; the centre’s income is substantially underpinned by non-discretionary focussed retailers,” he said.
The acquisition takes Elanor’s portfolio of owned and managed assets to over $1.25 billion. This year, it has acquired the Workzone West building in Perth for $125.25 million from a Charter Hall fund, the Belconnen Markets site in the ACT for $48.1 million and the 1.237-hectare Campus DXC office building in Adelaide’s Felixstow.
It also sold the Bell City complex in the northern Melbourne suburb of Preston for $157 million.
“We are pleased to have secured Waverley Gardens in partnership with Heitman. This acquisition further highlights Elanor’s ability to identify high investment quality assets that represent excellent value for our capital partners and security holders,” Elanor chief executive officer, Glenn Willis said.
US-based Heitman is reportedly close to finalising the acquisition of the 288 Edwards Street tower in Brisbane’s CBD from Canadian group Quadra Pacific.
Settlement of the Waverley Gardens transaction is expected in December.
Australian Property Journal
