Elanor Investors on track to $2b FUM; announces new fund and $60m acquisition


Listed real estate fund manager, Elanor Investors Group (ASX:ENN) has announced to the ASX it is on track to reach $2 billion in Funds Under Management (FUM) following the launch of a new managed fund, the “Riverside Plaza Syndicate”.

Consistent with Elanor’s strategy to reposition town centre retail real estate, the syndicate has acquired Riverside Plaza, a Coles anchored shopping centre located in Queanbeyan, NSW, for $60 million. Riverside Plaza presents the opportunity to repurpose a vacant Target tenancy for medical and health uses, and to realise value for the non-core surplus land at the property.

This investment takes Elanor’s FUM to approximately $1.75 billion following a series of new investments in the commercial office and healthcare real estate sectors over the six months to 30 June 2020.

Elanor proved its disciplined “risk-first investment strategy” in its recent FY20 annual results (where valuations across the Group’s managed funds portfolio increased 0.2% from pre-COVID levels).

This strategy involves identifying and acquiring assets that provide strong income returns and significant value-add potential. It has resulted in Elanor investing in sectors that have performed strongly over the COVID period. Elanor’s sectors of focus include retail real estate assets providing everyday goods and services, regional accommodation hotels, Government-leased and non-CBD commercial offices, and healthcare real estate.

In March 2020, Elanor established the $123 million Elanor Healthcare Real Estate Fund. This Fund is focused on investing in defensive healthcare real estate assets such as multi-tenanted medical office and day surgeries that provide ‘out-of-public hospital’ services. The strategy of this Fund is also informed by the increasing cost pressures in the healthcare sector and the needs of an ageing population. The seed assets of the Elanor Healthcare Real Estate Fund have proven their resilience over the COVID period.

“While the COVID-19 pandemic continues to present challenging operating conditions, we are pleased with the resilient performance of the Group’s assets over the period,” said Elanor CEO Mr. Glenn Willis.

“As we approach $2 billion in Funds Under Management, our disciplined risk-first approach to real estate investment is well recognised by our capital partners and as such, we continue to experience strong demand for our funds. Our successful investment approach is further evidenced by our track record. We have achieved an average IRR of 20% per annum on realised investments since the listing of Elanor in 2014.”

“We have a strong pipeline of funds management opportunities across all of our investment sectors. Furthermore, we continue to pursue opportunities in new real estate sectors and explore strategic options to realise our growth objectives. We are well-positioned to grow our funds management business,” said Mr. Willis.

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