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.

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