Challenger sells CRE real estate business

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

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago