Challenger sells CRE real estate business

challenger real estate M&A

11 April 2023
| By Laura Dew |
image
image
expand image

Challenger has announced a strategic partnership with Elanor Investors Group to become its commercial real estate partner in Australia and New Zealand. 

This would see Challenger sell its Australian real estate business, CRE, to Elanor for $42 million in new securities issued by Elanor. Upon completion, Challenger’s holding in Elanor would be approximately 18 per cent of total Elanor securities.

Challenger and Elanor would establish a strategic partnership, which would include an exclusive distribution arrangement where Challenger’s multi-affiliate business, Fidante, would distribute Elanor’s existing and new funds, and Elanor would become Challenger’s commercial real estate partner in Australia and New Zealand.

The transaction would also involve new investment management agreements between Challenger Life and CRE third-party clients with Elanor, representing approximately $3.4 billion of funds under management, invested across retail, office and industrial assets.

A Challenger representative would join the Elanor board.

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.”

Elanor’s chief executive, Glenn Willis, added: “We are pleased to have executed on a key strategic objective of the group to grow AUM through the acquisition of a significant real estate funds management platform. This is a transformational transaction for Elanor. 

“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.”
 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

3 days 21 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 1 day ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 3 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 19 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

1 day 22 hours ago