Elanor Investors Group to acquire Challenger’s Australian real estate funds management business

Elanor Investors Group has agreed to acquire 100 percent of Challenger’s A$3.4 billion ($2.3 billion) Australian real estate funds management business (CRE) for a maximum consideration of A$41.8 million ($28 million), and establish a broader strategic partnership between Elanor and Challenger.

Elanor will issue 27.4 million securities to Challenger as consideration for the acquisition of CRE, representing up to 18.2 percent of ENN securities on issue. The consideration is subject to claw-back provisions (of up to 50 percent throughout three years) based on certain milestones, including minimum base funds management fee targets.

Elanor Investors Group and Challenger also entered into a strategic partnership whereby Elanor will be Challengers’ real estate funds management partner in Australia and New Zealand, and Fidante (Challenger’s multi-affiliate funds management business) will exclusively distribute Elanor’s real estate managed funds.

The acquisition