Elanor acquires Fairfield Centre
Elanor Investor Group has acquired the Neeta City Shopping Centre in Fairfield for $85.3 million. Elanor picked up the Centre well below replacement cost and at a yield of circa 7.8%.
The Woolworths and Big W anchored centre includes over 100 specialty stores and over 1100 secure parking spaces over a 2.22ha site.
While no planning proposals have yet been lodged, the site has been earmarked by Fairfield Council for potential mixed-use rezoning, increased building heights to about 18 storeys and a higher floor-space ratio in its recent urban design study.
The site could potentially yield between 595 and 660 residential units across about 75,000 square metres of overall gross floor area on the site, however Elanor will unlikely pursue a redevelopment strategy, instead focus on improving the retail mix and rental income from the existing asset.
The property was last acquired by Australian Wholesale Property Fund for $86M in 2006. At that time, the Fund was managed by Allco, however following their collapse the Fund Management was transferred to Arcadia Funds Management.
The Centre was sold by Colliers.