Elanor Retail Property Fund (ERF) has agreed to sell the Auburn Central shopping centre in Western Sydney to SCA Property Group for A$129.5 million, a 4.9% premium to the book value of A$123.5 million.
”Auburn Central has been transformed into a triple-supermarket anchored, metropolitan neighbourhood shopping centre with the introduction of ALDI and Tong Li supermarkets to complement the existing Woolworths. Furthermore, this repositioning project has generated a 12% income yield on the total development cost of $20 million,” said Elanor in the ASX announcement.
“Since ERF acquired the property in 2016, we have been focused on executing our strategy to unlock value through actively repositioning the asset. This has resulted in Auburn Central being converted from a large sub-regional asset to a triple-supermarket neighbourhood centre. The sale of Auburn Central generates a 24.5% IRR to ERF investors and highlights our capability in unlocking the value of our assets through actively repositioning the retail mix to nondiscretionary focused offerings,” said Michael Baliva, Fund Manager.