The Elanor Retail Property Fund (ERF) has sold a retail property for $129.5 million to SCA Property Group, which is nearly double of its purchase price from five years ago.
ERF sold 100% of its interest in Auburn Central, a shopping mall in Western Sydney, which was acquired for about $68 million in 2015.
In 2016, the mall was independently valued at $85.2 million. During its ownership, ERF made a few changes that included replacing Big W with a new ALDI store, and adding a Tong Li supermarket to complement the existing Woolworths.
Co-head of real estate and ERF fund manager Michael Baliva said: "The sale of Auburn Central highlights our capability in unlocking the value of our investments through actively repositioning the retail mix to non-discretionary focused offerings."
"Discretionary retail offerings that are increasingly moving online, such as discount variety or fashion, are underperforming," Elanor head of retail Matt Healy said.
"Offerings that require the physical presence of the consumer such as gyms, fresh food, medical, and childcare are flourishing as local residential populations grow. Our retail repositioning and right-sizing strategies transform retail real estate assets."
ERF is a subsidiary of Elanor Investors Group (ENN), which has over $1.9 billion of assets across Australia and New Zealand.
Elanor has repositioned other properties, such as Neeta City in Fairfield, where a former Big W tenancy was converted into a customer car park, and Canberra's Belconnen Markets is being refurbished into a fresh food markets precinct.
It recently acquired the Woolloongabba Community Health Centre in Brisbane for $37 million.