Elanor Retail to put assets on Market as it focus' on Value Add Retail
Elanor Retail have completed a Strategic Review of their assets and the outcome is that the group will sell of core assets to focus on value add assets.
Elanor will commence a structured sales program for their "Income Assets" prior to the end of 2019, with the net proceeds to be recycled into new "Value-Add" retail assets or used to implement a buy back of securities.
The Income assets include;
Manning Mall, NSW
Gladstone Square, QLD
Northway Plaza, Bundaberg, QLD
Glenorchy Plaza, TAS
The sale of regional retail assets will be difficult for the group in the current climate.
ERFs focus going forward will be on retail assets that provide opportunities for high, risk-adjusted total returns from realising the highest and best use via a repositioning of the centres’ retail tenant mix and/or unlocking the assets’ development potential.
Since listing in November 2016, ERF has delivered a total return of 15% p.a. on its Value-Add Assets, Auburn Central and Tweed Mall. ERF believes that prevailing market conditions are presenting high-quality Value-Add investment opportunities in the retail sector.