Elanor doubles down in Mulgrave
Elanor Investors Group is believed to be paying c$200 million for adjoining Mulgrave industrial assets.
Covering 23.23 hectares and hugging the Monash Freeway for 562 metres, the properties, leased to Woolworths and Renold, were listed in July by locals Harry Stamoulis and Dug Pomeroy who bought them in 2017 and 2018 respectively.
The holding’s western boundary abuts a 13.5ha Ensign owned laboratory; while not for sale, there was speculation it could be with that business recently selling buildings including with leasebacks.
Also in the pocket is the Waverley Gardens shopping centre which coincidentally Elanor with Heitman listed for sale three months ago with c$220m price hopes – a rise on the $178m they paid Blackstone in 2018.
Low yield
Mr Stamoulis and Mr Pomeroy appointed Dawkins Occhiuto’s Walter Occhiuto and Andrew Dawkins to market 508-550 Wellington Road Highway – also in July.
A $200m result demonstrates a 3.25 per cent net passing yield, in part reflecting the surplus land and Renold site’s immediate development upside.
Any sale – the properties are believed to be in due diligence – comes the week we reported Mr Stamoulis is buying East Melbourne’s Orica House, Australia’s first skyscraper, for $155m from Charter Hall.
Elanor is Sydney based (story continues below).
Double the land
Should Elanor pull off the Mulgrave swap, it will more than double its footprint; Waverley Gardens occupies 10.6ha.
It does however trade off development upside: the shopping centre is on Commercial 1 zoned land, able to accommodate high density housing, versus the new properties on the less flexible Industrial 1.
Woolworths is also on a lease expiring, with options, in 2071 – further limiting any redevelopment, including a residential repurposing.
However Renold, which like the supermarket has occupied its property since the 1970s, is on a lease ending in four years.
Mulgrave is 25 kilometres south east of Melbourne’s CBD.
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