Elanor Retail Property Fund has announced the divestment of three shopping centres following a strategic review into its assets.

The fund has appointed Savills Australia to sell the properties, which are spread across NSW and Queensland, separately or in-line.

Speaking about the divestment program, Glenn Willis, Managing Director and CEO of Elanor Investors Group, said that ERF would focus on retail assets that provided opportunities for "high, risk-adjusted total returns".

At a glance:

• Elanor Retail Property Fund has announced the divestment of three supermarket-anchored shopping centres following a review into its income assets.
• Savills Australia's Peter Tyson, Steven Lerche and Jon Tyson have been appointed to market the properties.
• The centres for sale include Manning Mall in Taree, NSW, Moranbah Fair in Moranbah, Queensland, and Gladstone Square in Gladstone, Queensland.

Savills’ Peter Tyson, who is marketing the properties alongside Steven Lerche and Jon Tyson, said the three shopping centres would attract significant investor interest in a market which continues to show a deep appetite for non-discretionary retail investments.

“All three assets offer extremely strong investment attributes underpinned by high trading non-discretionary supermarket sales that enjoy an excellent market share in each of their respective markets,” he said.

Each centre features around 80 per cent of GLA leased to national tenants.

Manning Mall is an enclosed 10,745 square metre shopping centre located in the CBD of Taree, New South Wales.

Anchored by a strong performing Coles supermarket currently in turnover rent and a mid-size Target, the centre comprises 29 specialty shops and four kiosks focused on non-discretionary goods and services. 

Moranbah Fair is a fully enclosed 7,052 square metre neighbourhood shopping centre, located in the CBD of Moranbah, Queensland.

The fully leased centre is anchored by a strong trading Coles supermarket, Target Country and a KFC, along with 12 specialty shops, two kiosks, six offices and a KFC drive-through pad site. 

My Tyson said that the centre has "absolute dominance" in its catchment, being the only major retail and supermarket offer servicing Moranbah and the surrounding Isaac Regional Council area. 

The recent approvals for the $2.8 billion Carmichael Mine by Adani Mining, will deliver some 10 million tonnes of coal each year, including a new 200 kilometre rail project and 185,000 megawatt solar farm.

Gladstone Square is a single level 6,861 square metre neighbourhood shopping centre located in the CBD of Gladstone, Queensland.

Anchored by a Woolworths supermarket leased until 2036, the centre includes a Reject Shop and 27 specialty shops focused on non-discretionary goods and services. 

The recently expanded harbour allows increased exports of LNG and each year 50 million tonnes of coal passes through the port, making up 70% of the total exports.

The Gladstone economy is expected to benefit from a range of major infrastructure projects over coming years, including the new “East Shores” tourism cruise ship terminal, expanded hospital facilities, duplicated shipping channels to accommodate larger vessels, a new $2 billion island resort project, a new ammonia-to-energy plant and a possible new steel mill.

Such projects are expected to bolster the existing Gladstone trade area population of over 36,000 to over 41,000 in coming years, doubling retail expenditure to over $1 billion in the same timeframe.

Mr Tyson said the timing of the offering sits well with national retail property transactions, which are running at over $6 billion a year (Savills research). 

“The most popular retail asset class in the market remains Coles or Woolworths anchored neighbourhood centres due to their resilient predominantly non-discretionary spend focus, underpinned by food and service tenants and their liquidity in the marketplace,” he said.

"Savills Research has identified that investment activity has been bolstered in recent months by the lowest interest rate environment on record as investors chase stable long term returns well above long term bond rates."

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