This article is from the Australian Property Journal archive
ELANOR Investors Group (ENN) has completed its acquisition of Challenger’s $3.4 billion Australian real estate funds management business (CRE), which will more than double Elanor’s funds under management to $6.4 billion.
The acquisition, announced in April, has seen ENN issue 24.8 million securities as consideration for the $37.7 million acquisition of CRE, representing 16.6% of ENN securities on issue.
ENN has also secured the transfer of the institutional mandate with a subsidiary of Abu Dhabi Investment Council (ADIC) as part of its acquisition of CRE. Part of that has seen the transfer of securities resulting in Challenger’s and ADIC’s holding in Elanor representing approximately 13.6% and 3.0% of total Elanor securities on issue, respectively.
ENN and Challenger have also entered into a strategic partnership whereby ENN is Challenger’s real estate funds management partner in Australia and New Zealand and Fidante, Challenger’s multi-affiliate funds management business, is ENN’s exclusive distribution partner for its real estate managed funds.
The acquisition will result in material FY24 earnings accretion for ENN. CRE has been acquired on a circa 3×1 EBITDA multiple, and will strengthen recurring funds management income with ENN’s annualised run rate base funds management fees forecast to be $41.3 million, a 78% increase on FY23 forecast base management fee income.
Challenger’s chief executive, funds management, Victor Rodriguez has been appointed as non-executive director of ENN and Elanor Commercial Property Fund.
Rodriguez was appointed to his role at Challenger in August 2022, following five years as head of fixed income within the Challenger Investment Management business.
Rodriguez has over 30 years’ investment management experience. Prior to joining Challenger, he was head of Asia Pacific fixed income at Aberdeen Asset Management, based in Singapore between 2014 to 2017, where he led a team of more than 30 investment professionals across the region. He was also a regional director overseeing the wider Aberdeen business.
Prior to relocating to Singapore, Rodriguez led Aberdeen’s Australian Fixed Income business. Rodriguez also held various roles over 13 years at Credit Suisse Asset Management in Australia, including deputy head of fixed oncome for three years up to 2009.
