Elanor to sell off $130m worth of shopping centres

Elanor has a strong investment track record in value-add retail assets, including office buildings, and has also runs high-performing hotel funds.

Listed landlord Elanor Retail Property Fund will sell off about $130 million worth of income producing malls and pour the sale proceeds into higher returning value-add retail assets.

Elanor said the fund’s value-add assets had delivered a 15% annual total return since the fund was listed in late 2016.

The trust will now focus on shopping centres that can be repositioned or have significant redevelopment opportunities, which it said were coming on the market more often.

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Many of its listed rivals have been selling off unwanted malls that are no longer performing but could be turned into other uses, including housing or even offices.

Meanwhile, the fund will sell off its income assets and put the sales proceeds either into fixing its existing centres or buying new ones.

The move is the culmination of a strategic review that was flagged in February in which the company weighed up disposing the entire portfolio.

It will now kick off a structured sales program for the fund’s income assets prior to the end of 2019.

The new focus will give the company an exposure to retail assets that provide opportunities for high, risk-adjusted total returns from realising the highest and best use via repositioning.

The fund said it had delivered a total return of 15% per annum on its value-add assets, Auburn Central and Tweed Mall.

Elanor has a strong investment track record in value-add retail assets, including office buildings, and has also runs high-performing hotel funds.

This article originally appeared on www.theaustralian.com.au/property.