Elanor Investors has bought Challenger’s Australian real estate funds management business for up to A$41.8m (€26m).
The deal has more than doubled Elanor’s assets under management from A$3bn to A$6.4bn.
Elanor CEO Glenn Willis, said: “Combining Elanor’s real estate funds management capability with Challenger’s market-leading capital raising platform delivers significant size and scale benefits, and positions us for further strong growth.”
Nick Hamilton, managing director and CEO of financial services group Challenger, said the combination of Challenger’s real estate platform with Elanor would provide a significant uplift in capability and scale.
Under their strategic partnership Elanor will be Challengers’ real estate funds management partner in Australia and New Zealand. In return, Fidante - Challenger’s A$70bn multi-affiliate funds management business - will exclusively distribute Elanor’s real estate managed funds.
Hamilton said Challenger would benefit from both alignment and access to growth via the acquisition of a strategic stake in fellow ASX-listed company Elanor.
Post-transaction, Challenger will be Elanor’s largest securityholder with an 18.2% holding.
Elanor said Challenger intended to be a long-term Elanor securityholder, reflecting the strategic nature of the partnership, and would work with Elanor to support the growth of the business.
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