Elanor lines up c$530m Perth mall

Vicinity’s Box Hill proposal, with a 51 storey apartment building and 25 level office, was permitted this month.

Elanor Investors Group (ENN) is in advanced negotiations for north east Perth’s Midland Gate.

The speculated $530 million deal with Vicinity includes management rights.

Based on the shopping centre’s net rental, it would reflect a circa-six per cent yield.

Colliers’ Lachlan MacGillivray and CBRE’s Simon Rooney listed the asset in February.

Since 2018, the investment was the last property held by the Vicinity Retail Partnership, a former Novion trust backed by the Future Fund and Canada Pension Plan Investment Board.

Midland Gate

Developed in 1980 at 274 Great Eastern Highway, Midland Gate includes 68,600 square metres of lettable area occupied by some 197 tenants including Aldi, Big W, Coles, Kmart, Target and Woolworths; it was last renovated and extended in 2017 at a c$100m cost.

Capturing a trade area with c237,570 people, the 14.4 hectare Town Centre zoned site contains 3059 car parks.

The disposal comes in the week Vicinity was granted permission for a $2 billion revamp affecting 5.5ha in Melbourne’s Box Hill, adding a 51 storey apartment tower and 25 level office.

The landlord’s development pipeline also includes a $685m extension and renovation at its Chadstone Shopping Centre, again in the Victorian capital, which will add a 20,000 sqm commercial building (story continues below).

Last October the manager paid Lendlease $538m for a half-stake in Gold Coast’s Harbour Town Shopping Centre.

ENN expands into Perth retail

The Midland Gate acquisition – ENNs only Perth mall – comes eight months since the group snapped up the Warrawong Plaza, at Wollongong, south of Sydney, for $136.25m, reflecting a 7.75pc return.

Last April, the fund manager outlaid $145m – a c8pc yield – for Toowoomba’s Clifford Gardens.

The vendor in both cases was Blackstone.

The campaign timing, during lockdowns, was when confidence for retail assets hit a particularly low point.

ENN’s significant shopping centre portfolio also includes the Glenorchy Plaza, in Hobart, Belconnen Markets at Canberra and Melbourne’s Waverley Gardens.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.