elanor-commercial-fund-ecf-asx-ticker-feature
Image: Canva, Elanor Commercial Property Fund.
  • Circa 2,000sqm leased, bringing Cannon Hill property to 90.6% occupancy
  • Property WALE is 6.9 years, the other major tenant is Abacus dx
  • Retail component of offer to fund Harris Street acquisition completed

Elanor Commercial Property Fund (ASX: ECF) recently announced the signing of a seven year lease to Alliance Pharmaceuticals in Queensland.

The approximately 2,000 square metres property is located at 34 Corporate Drive in Cannon Hill and will see the property occupancy move to 90.6% and ECF’s occupancy to 95.6%.

The Alliance Pharmaceutical lease, ECF said, is expected to bring the property value up ‘materially’ from its present book value of $22.5 million.

ECF Fund Manager, David Burgess said, “The execution of the Alliance Pharmaceuticals lease completes the repositioning of Canon Hill to a healthcare life sciences property.”

With a WALE of 6.9 years, the other major tenant of the property is Abacus dx, a global distributor of diagnostic pathology, medical research and laboratory equipment.

ECF reaffirms its FY22 distribution guidance of 9.4 cents per security following the completion of the acquisition of the Fund’s 49.9% interest in the 19 Harris Street property.

Completion of retail offer

ECF also announced the successful completion of the retail component of its 1 for 8 accelerated non-renounceable entitlement offer to raise $36.6 million.

The retail component raised circa $18.7 million, with the institutional component raising circa $17.9 million. The retail component was fully underwritten by institutional investors.

Under the Retail Entitlement Offer, eligible retail securityholders who took up their entitlement in full were able to apply for additional new ordinary securities in ECF in excess of their entitlement up to a maximum of 100% of their full entitlement.

Eligible retail securityholders took up approximately $5.1 million worth of New Securities at $1.04 per New Security, representing a participation rate of approximately 27%. The remaining approximately 13 million New Securities that were not taken up by eligible retail securityholders under the Retail Entitlement Offer will be allocated to institutional investors who sub-underwrote the Retail Entitlement Offer, including Rockworth Investment Holdings Pte Ltd (Elanor Investors Group’s largest securityholder).

The offer will partially fund the acquisition of a 49.9% stake in an Elanor Investors Group managed fund “Harris Street Fund” that will acquire the $185 million commercial office property at 19 Harris Street, Pyrmont.




You May Also Like

Work from home is here to stay, and Australia’s secondary offices are at a turning point

Secondary office assets face challenges with poor uptake and declining values, especially in B and C-grade properties.

Why Australia needs more industrial assets to boost productivity and growth

A new report reveals that Australia’s industrial assets handle over $1.2 trillion worth of products annually.

Sydney’s retail sector continues to improve, with one area boasting zero vacancy

Vacancy rates for Sydney’s prime retail core have dropped to 8.3%, with the one area recording vacancy rates of zero.

Construction titan Beehive Homes finds its new home in a prime Williamstown North warehouse

NSL Property Group facilitated the $650,000 deal, highlighting the property’s prime location and industrial versatility.

Experts Corner by The Property Tribune

Ko & NPA partner to launch several co-owned luxury properties at Mermaid Beach, Gold Coast

Ko's partnership with NPA Projects provides more opportunities to co-own off-the-plan holiday residences, including exclusive Gold Coast properties

Continue reading

Top Articles

Expert tips on how to be a successful property investor

Property expert and buyer's agent, Lloyd Edge, shares his insights.

Australian commercial property update: Industrial and tourism assets lead the pack in trying times

Commercial assets have faced volatility recently, driven by financing changes and demand fluctuations from institutions and funds.

WA has emerged as a property investment hub, and why that's a good thing

Eastern investors chase Perth's affordability, doubling the distance between home and investment in 2023, reveals MCG research.