Elanor seeds fund with $80.2m Woolloongabba healthcare, office asset

The Ipswich Road office, built for Queensland Health in 2006, is 5-star NABERS energy rated.

Elanor Investors Group (ENN) will seed its third fund in three months with a Woolloongabba mixed-use commercial investment costing $80.2 million.

Covering 1.54 hectares, it contains a four level, 5-star NABERS energy rated medical facility at 163 Ipswich Road built in 2006 for the state government’s Queensland Health which is on a lease expiring in 4.5 years.

Brisbane Catholic Education consolidated offices at Dutton Park and West End when it leased 2 Burke Street last year.

It also includes 2 Burke Street, an older double storey office formerly occupied by Downer EDI, which last year Brisbane Catholic Education rented until 2029 with an option.

The two buildings contain a total c9163 sqm of lettable area.

In an established healthcare precinct opposite Princess Alexandra Hospital, the address is near the Cross River Rail which will connect Woolloongabba to Brisbane’s CBD and southern suburbs upon completion in just over three years.

Four weeks ago, for its Elanor Healthcare Real Estate Fund, ENN outlaid $37m for the nearby Woolloongabba Community Health Centre at 228 Logan Rd – a deal which reflected a six per cent yield (story continues below).

Another state government department, Metro South Health, is for five more years still able to rent that complex which sits on 4150 sqm.

Burke Street Fund

ENN will hold its latest Woolloongabba property in a new trust, the Burke Street Fund, which its co-head of real estate, David Burgess, said will manage and value-add in an attempt to facilitate lease expansion and extension.

“Our focus on acquiring strong income generating properties that also possess value-add opportunities is particularly attractive to our investors in a post COVID environment,” the executive added.

“This [asset] provides secure income from the…high quality tenants and significant value-add opportunities given its prime location with favourable zoning”.

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Marc Pallisco

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