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Elanor Warrawong Plaza Fund targets Core-Plus returns through repositioning strategy

Core Property has reviewed the Elanor Warrawong Plaza Fund, the latest unlisted property fund by Elanor Investors Group.

The Fund provides an opportunity to invest in a shopping centre located 8km south of the Wollongong CBD in Warrawong NSW.

The Manager has developed a repositioning strategy designed to unlock underlying value for investors. The strategy involves remixing the tenancies towards non-discretionary uses. This includes replacing the Target discount department store with a new full line Woolworths supermarket with ecommerce and fulfillment capabilities (including a ‘dark store’ and direct to boot offerings), and introducing a childcare facility. The strategy is already well progressed with key agreements in place to position the asset as the only triple supermarket anchored centre in the Wollongong region.

The Manager is seeking to raise $82.2M through the issue of 82.2M units at $1.00 per unit. Distributions are forecast to be 7.0 cents per unit (annualised) for FY22 and FY23, increasing to 9.2 – 9.7 cents, following the successful delivery of the strategy.

The Offer is available to wholesale and sophisticated investors.

Core Property has rated the Fund as RECOMMENDED.