Elanor Market Update22 December 2019
As detailed in its previously announced strategic review, Elanor Retail Property Fund is focused on unlocking the significant value upside in both Auburn Central and Tweed Mall. These properties will continue to benefit substantially from repositioning the centres' retail mix and unlocking Tweed Mall's development potential.
Auburn Central – Aldi Agreement for Lease
ERF is pleased to announce that it has entered into an Agreement For Lease with Aldi Foods Pty Ltd at Auburn Central for a new 1,755 square metre supermarket, secured by a new 15-year lease with two further five-year options.
Aldi is expected to commence trading in November 2020, replacing BigW as the centre's second anchor retailer. As recently announced, BigW has entered into an early surrender of its lease and will vacate the centre in February 2020.
Strong performance of Tweed Mall
ERF is pleased to update the market on the performance of Tweed Mall since the opening of Aldi in August, 2019. The centre has experienced a significant increase in sales and footfall traffic of 16.1% and 13.9% respectively. These increases are ahead of our expectations and support the centre's continued repositioning towards a retail offering which is increasingly non-discretionary focussed.
Update on sale of Income Assets
ERF is undertaking a structured sales program of the Fund's Income Assets, with the proceeds to be recycled into Value-Add retail or utilised for a buy back of securities. ERF is pleased to have engaged Savills National Retail Investments team to divest three shopping centre assets being Moranbah Fair, Manning Mall and Gladstone Square.
We believe that these assets will attract significant investor interest in a market which continues to show strong demand for neighbourhood based non-discretionary retail investments anchored by strong performing supermarkets secured with long leases.