Investment sees Elanor end Challenger Life mandate

Listed real estate fund manager, Elanor Funds Management has announced that it has entered into binding terms to expand its strategic alliance with Singapore’s Rockworth Capital Partners under which Rockworth will invest up to $125 million into Elanor.

Announcing the move to the Australian Securities Exchange (ASX), Elanor said the funding would be used to recapitalise the business, stabilise the balance sheet and and reduce gearing.

It said the expanded strategic alliance will provide a foundation for stabilising and growing Elanor’s business while enabling it to continue to actively manage the real estate assets of the company and Elanor’s other existing managed fund capital partners.

The ASX announcement also noted that a key component of the transaction is the acquisition of Singapore based real estate investment manager, Firmus Capital and a cessation and unwinding of its Challenger Life mandate and related agreements.

It said that Singapore-based Firmus is 70% owned by Rockworth and 30% pwmed by Firmus chief executive and current Elanor director, Su Kiat Lim.

Commenting on the transaction, Elanor chair, Ian Mackie said the intention was to preserve and recover Elan securityholder value.

“Elanor has undergone an extensive period of transition during our business stabilisation and this initiative will prove the required reset to rebuild our real estate investment platform,” he said.

“Our focus is, first and foremost, on stabilising and then growing the Australian business, followed by expanding into Asia, alongside Rockworth, through capital-led growth opportunities in key real estate sectors.