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Elanor Investors Group (ASX:ENN) is into investment and funds management business. It primarily focuses on acquiring and unlocking value in real estate assets that provide robust income and capital growth potential. The key strategic objective of the Group is to identify and originate real estate-backed investments that deliver strong returns for both Elanorâs funds management capital partners and Elanor security holders. The Group now manages over $1.25 billion of assets across Australia and New Zealand.
On 11 March 2019, Elanor Investors Group has announced that it had established a new managed fund, the Fairfield Centre Syndicate, which has acquired a sub-regional shopping centre âNeeta Cityâ for $85.3million, located in Fairfield NSW. This acquisition reflects a passing yield of 7.8% and a purchase price of $3,450 per meter square of lettable area, which is below its replacement cost.
Neeta City is a convenience-based centre providing access to everyday goods and services. Located in the growing western Sydney metropolitan area, 300 metres from Fairfieldâs train station, the centre presents significant opportunities to add value through repositioning.
Situated on a 2.2-hectare site, the centreâs lettable area of 24,750-meter square is anchored by a Woolworths supermarket and a Big W discount department store. The centre provides a wide range of retail amenity to the Fairfield CBD with over seventy speciality non-discretionary focussed goods and services retailers.
The CEO of the company, Glenn Willis, said that after the recent acquisition of the Waverley Gardens shopping centre in Melbourne, the company is satisfied to have secured the Sydney metropolitan shopping centre for its capital partners, which is of high investment quality. The investment is a demonstration of the strategy of the company acquiring high-quality real estate where there is an opportunity to unlock the value through the active asset management approach of the company. It has a track record of successfully repositioning assets like Neeta City to deliver strong returns for both their capital partners and security holders.
The Co-Head of Real Estate of the company, Michael Baliva, added that Neeta City has significant value-add potential given its advantage of location, ample car parking and opportunities to âright sizeâ the retail offer to introduce more productive commercial uses. The strategy of the company is focused on enhancing both the income and capital value for its Syndicate capital partners.
ENN will co-invest in up to 20% of the Syndicate alongside domestic institutional and private capital partners.
On the price-performance front, the stock of Elanor Investors Group last traded at $1.720, with a market capitalisation of $46.6 million. The stock has generated a negative YTD return of 3.37% and negative returns of 12.47% and 4.44% over the past six months and three months period respectively. However, the recent one-month return stood at 2.38%. It had a 52-week high price of $2.10 and a 52-week low price of $1.615 with an average trading volume of 35,024. It is trading at PE multiple of 63.470x with an annual dividend yield of 8.68%.
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