Elanor, Stockland trade Perth shopping centre

Elanor entered negotiations to buy Perth’s Midland Gate in May.

Elanor Investors Group (ENN) has acquired a Western Australian shopping centre – to upgrade and part sell-down.

Riverton Forum, 11 kilometres south east of Perth, is costing $98.8 million, reflecting a 7.25 per cent capitalisation rate.

HMC Capital this month purchased Southlands Boulevarde, two kilometres south of Riverton.

Stockland was the seller; it purchased the complex in parts from 2006 – four years after entering discussions with the family trust that developed it in the mid-1990s.

Colliers’ Lachlan MacGillivray was the agent.

The deal comes a week since the fund manager, for its Hotel Accommodation trust, paid architect and investor Max Zhang c$18m for the Chateau Yering winery, in the Dandenong Ranges, 40 kilometres north east of Melbourne, and c$12m for the Wildes Boutique Hotel at Kangaroo Valley, in New South Wales’ Shoalhaven region.

In May, we reported ENN entered negotiations for Midland Gate – on 14.4 hectares in Perth’s north east – for c$530m, reflecting a six per cent yield.

If that deal proceeded, it would have been the group’s first in the city.

The owner is Vicinity.

Another south Perth mall sells

ENN will hold the latest shopping centre in a single asset fund now calling on investors.

It has also changed the name – from Stockland Riverton (story continues below).

Anchored to Big W and Woolworth, and with a mini major occupied by The Reject Shop, the main complex contains 58 specialty stores.

Combined with a tavern and structures on three pad sites, buildings occupy just 31.4pc of the 6.3ha site at the south east corner of High Road and Welleri Drive.

About two per cent of the lettable area is vacant.

Ninety three per cent of the investment’s revenue comes from daily needs occupiers.

“The investment has significant potential to enhance the defensive, everyday needs offerings of Riverton Forum and divest the property’s non-core pad sites at materially lower yields” ENN chief executive officer, Glenn Willis, said.

“The Riverton Forum investment presents high value given the attractive acquisition metrics for the centre and the opportunity to unlock value,” he added.

Elsewhere in Perth, yesterday we reported Baron Vanilla outlaid $26m for Drovers Marketplace, on 1.6ha in Wanneroo, north of the CBD.

Earlier this month, meanwhile, HMC Capital, the new name for HomeCo, paid Lendlease $92.5m for Southlands Boulevarde, on 6.15ha at Willeton – two kilometres south of Riverton.

Last quarter, Greenpool Capital and Savills Asset Management spent $81.5m for the 6.6ha Forest Lakes shopping centre, in Thornlie, seven kilometres east of Willeton.

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Marc Pallisco

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