Elanor Investors Group, ASX-listed an investment and fund management business (“ENN” or “Group”), announced that it has launched a new fund management initiative, the Stirling Street Syndicate (“Syndicate”).According to the ASX announcement, the new fund has acquired a commercial office property at 34- 50 Stirling Street, Perth for $24 million.
This is the second acquisition of the Group in the Perth market, following the $125.25 million acquisition of the WorkZone West asset in June 2018.
The commercial office property is a high-quality, two level, modern office building, completely redeveloped in 2009, with a total net lettable area of 6,657 square metres. It is situated on a significant, 6,085 sqm site with three street frontages. The Property’s current zoning allows for 24,340 sqm of developable gross floor area, with potential for up to 36,500 sqm with bonus floor space ratios (subject to planning approval). The current zoning allows for a broad scope of uses including commercial, retail, hotel and residential.
ENN CEO, Glenn Willis, said: “We are pleased to have secured another high-quality office building in the recovering Perth market for our investors. We believe this asset offers our capital partners an attractive entry point reflecting an underlying land value at cyclically low rent levels.
ENN’s Co-Head of Real Estate, David Burgess, added: “This off-market acquisition was compelling given multiple options to enhance the value of the property including: re-branding and re-leasing the existing building at prevailing market rents, redevelopment of the site in response to an office pre-lease requirement, or further alternative strategies including the master planning of the site to optimise the underlying land value ”