Challenger, Elanor target HNWs, instos

Mike Taylor

Managing Editor/Publisher, Financial Newswire

10 July 2023

Challenger Limited has completed the sale of its Challenger Real Estate business but will be retaining an interest as part of its broader funds management distribution strategy.

After initiating the sale of Challenger Bank in October, last year, Challenger on Friday announced that it had completed the sale of the real estate business announcing to the Australian Securities Exchange (ASX) that it had completed the sale to Elanor Investors Group for a total consideration of $38 million.

The announcement said that Elanor had issued 24.8 million new securities as consideration for the transaction, representing around 17% of Elanor securities on issue.

Under the relationship, Challenger and Elanor are establishing a strategic partnership which will include an exclusive distribution arrangement under which Challenger’s multi-affiliate business, Finante, will distribute Elanor’s existing and new funds, and Elanaor will become Challenger’s commercial real estate partner in Australia and New Zealand.

Challenger said the transaction supported its strategy to expand its funds management offering by leveraging a combination of Fidante’s distribution capability and Elanor’s real estate platform to create a new Fidante affiliate manager offering “a very compelling proposition for retail, high net worth and institutional customers”.