Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Challenger completes CRE sale for reduced sum

challenger/Fidante/real-estate/merger/

10 July 2023
| By Laura Dew |
image
image image
expand image

Challenger has completed the sale of its Australian real estate business to Elanor Investors Group for $38 million.

This is a smaller sum than the $42 million initially put forward in April 2023 and Challenger said the lower figure reflects the termination of one third-party institutional mandate.

Elanor has secured the transfer of a third-party institutional mandate with a subsidiary of Abu Dhabi Investment Council (ADIC) as part of the acquisition. 

Challenger will transfer 4.5 million in Elanor securities to ADIC following the mandate transfer with the securities subject to buyback from Challenger based on certain milestones.

The $38 million consideration is received in 24.8 million new securities issued by Elanor representing 17 per cent of Elanor securities on issue, down slightly from 18 per cent in the April announcement.

Challenger and Elanor will now establish a strategic partnership including a exclusive distribution agreement where

Challenger’s multi-affiliate business Fidante will distribute Elanor’s new and existing funds. Elanor will become Challenger’s commercial real estate partner in Australia and New Zealand.

This supports Challenger’s strategy to expand the fund management offering by leveraging Fidante’s distribution capabilities with Elanor’s real estate platform to create a new Fidante affiliate manager.

Challenger managing director and chief executive, Nick Hamilton, said: “The combination of Challenger’s real estate platform with Elanor will provide a significant uplift in capability and scale.

“Challenger will benefit from both alignment and access to growth via the acquisition of a strategic stake in Elanor and we are excited to continue to grow the real estate platform together with the Elanor team.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

1 week 6 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

2 weeks 6 days ago

So we are now underwriting criminal scams?...

6 months 3 weeks ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

2 weeks ago

A professional year supervisor has been banned for five years after advice provided by his provisional relevant provider was deemed to be inappropriate, the first time th...

3 weeks 6 days ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

2 weeks 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
3