Elanor Investors has reached agreements with Blackstone to acquire Clifford Gardens Shopping Centre, Toowoomba for $145m, leaving Blackstone with a loss on their investment.
Clifford Gardens Shopping Centre is as sub-regional shopping centre anchored by two supermarkets (Woolworths and Coles), a discount department store (Big W), two Mini Majors and a further 88 specialty tenants.
The Centre provides 27,651 sqm of net lettable area (NLA) with 1,422 on site car parking bays and a 158-bay overflow car park. Originally built in 1983, the Centre has undergone several major refurbishments, 1992, 2001 and 2009.
Blackstone acquired the asset in 2016 for $188.5m as part of a portfolio of Centre it acquired from Vicinity and have attempted to sell the Centre and others in the portfolio since 2017.
Blackstone and Elanor have traded places before with the local fund manager acquiring the Waverley Gardens Centre from Blackstone in 2018 for $178m on a 6 % yield.
More recently, Blackstone sold their Brimbank Shopping Centre to Mulpha Australia for $150m, though Blackstone had hoped to achieve $170m+, having paid $162m.
For Clifford Gardens, Elanor Investors plan to acquire the property for a discrete wholesale fund (see Fund details) with intentions of re-mixing the Centre to provide additional non-discretionary tenants, develop several pads sites and sell off an unutilised car park.
The centre has an occupancy of 96.2% (by NLA) with a WALE of 3.9 years (by income), both of which have been impacted by COVID. The acquisition price reflects a 8.25% passing yield and a cap rate of 7.25%.
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