Abu Dhabi Investment Council (ADIC) is participating in Elanor Investors Group’s purchase of Challenger’s A$3.4bn (€2.1bn) Australian real estate fund management platform.

ASX-listed Elanor said it had secured the transfer of the ADIC mandate as part of the acquisition.

The Sydney-based boutique fund manager entered an agreement to buy the Challenger real estate business in April, and simultaneously unveiled a strategic partnership with Challenger, an Australian financial services group.

Under the earlier arrangement, Challenger would have been issued 27.4m Elanor securities, equating to an interest of up to 18.2%, to become Elanor’s largest shareholder.

With the investment from ADIC, Elanor said Challenger’s holding would be revised to 13.7%.

Post-transaction, ADIC, the investment arm of the Government of Abu Dhabi, would hold a 3% interest in Elanor, with an option to lift the stake to 7.7%.

“The options vesting milestones are linked to ADIC committing a further A$500m in assets under management (mandate to Elanor),” said the company.

Elanor’s chief executive officer, Glenn Willis, said: “We are pleased to have secured transfer of the ADIC mandate, and ADIC becoming a substantial investor in ENN (Elanor). 

“We look forward to delivering strong investment returns for ADIC’s real estate investments, and growing AUM for the Elanor Group.”

Last August, ADIC’s sister organisation, Abu Dhabi Investment Authority, bought into a Melbourne-based alternative asset manager, Qualitas, potentially owning up to a 10% interest in the firm.

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