Eildon Capital secures funding to develop of $80 million shopping centre in burgeoning Melbourne suburb

Werribee, a rapidly growing family-first suburb in Melbourne, is set to get a new shopping centre valued at $80 million, courtesy of funds management company Eildon Capital (ASX: EDC). Eildon’s EFM Harpley Town Centre Property Trust Fund (EFM) has secured $31.5 million from wholesale investors for the new direct property fund. The seven-year fixed-term fund will aim to develop a new neighbourhood shopping centre, known as the ‘Harpley Town Centre’, in Werribee with anchor tenants including Coles and a major liquor retailer.

With a population forecast of 55,507 by 2023, Werribee is expected to experience significant population growth over the next two decades. Experts predict that by 2041, the population will soar to 86,883, making it an increasingly attractive destination for investors and businesses looking to tap into the suburb’s growing consumer base. Across the broader Wyndham Council which oversees Werribee, Wyndham Vale, Manor Lakes Point Cook and Hoppers Crossing – the population is set to exceed 500,000 by 2041 making Werribee a centrepoint in Melbourne’s burgeoning inner west. 

Harpley Town Centre, set to be completed by mid-2024, will feature 10,080 square metres of net lettable area (NLA) and offer strong national brand tenants including Coles, a major liquor retailer, a discount pharmacy, kids play centre and specialty tenants catering to consumers daily needs. The development will be located in the thriving master-planned community by Lendlease, 35km southwest of Melbourne CBD, and benefit from a range of uses including schools, childcare centres, convenience retail and essential services, and lakeside cafes and restaurants. 

The EFM Harpley Town Centre Property Fund offers investors a chance to invest in a new, strategically located shopping centre. With an attractive distribution and potential for capital growth, this investment boasts a forecast Weighted Average Lease Expiry (WALE) of approximately 10 years from practical completion. Additionally, EDC will co-invest $1.5 million into the Fund and earn establishment and ongoing management fees.

In the first half of FY23,  Eildon Capital experienced a 25.2% decline in income from ordinary activities and a 41.8% decrease in profit before tax. However, at the same time, it launched the Eildon Harpley Town Centre Property Fund. 

Following an independent valuation, the Town Centre has been valued at $80 million upon completion. This transaction is expected to increase the Group’s Assets Under Management (AUM) to approximately $360 million upon practical completion of the centre, up 28% from $280 million as of 31 December 2022.

The new property fund adds to EFM’s portfolio, which now comprises five property income funds, including three Coles-anchored neighbourhood shopping centres.

The Eildon Debt Fund, the Group’s primary credit fund, has $75 million AUM as of H1 FY23, with a history of successful investments and zero impairments. With a strong balance sheet and cash reserves, the Group can fund co-investment initiatives in both credit and equity in the Australian Real Estate market.