This article is from the Australian Property Journal archive
ELANOR Investors Group has acquired a commercial property at Cannon Hill in Brisbane’s inner-east as a seed asset for the Elanor Commercial Property Fund.
Elanor bought the 34 Corporate Drive property, which comprises a 12,390sqm site, for $20.4 million, reflecting an initial yield of 8.25% per annum.
The property has a net lettable area of 5,313sqm and 164 car spaces, and is 100% leased to SingTel’s Optus and international engineering firm Kaelus, with a weighted average lease expiry of around 4.4 years.
The property is situated within the Southgate Corporate Park, which counts NAB, Isuzu, Orica, WorkCover, Fairfax’s 2GB Radio, Holden and Compass amongst its tenants.
The initial gearing of the fund will be 50% of the asset’s valuations.
“34 Corporate Drive is strategically located in an office precinct with strong tenant demand fundamentals. The asset offers the potential for strong investment returns given the lease expiry profile and the quality of the tenants,” Elanor’s director, real estate, Sebastian Ugarte said.
Eleanor’s owned and managed assets is now at around $693 million, and the group said it is expecting to exchange contracts shortly on the acquisition of an additional asset for the new fund, valued at circa $30 million.
The group will subscribe for a co-investment of up to 20% of the fund’s initial equity.
Australian Property Journal
