Singapore-based real estate firm Rockworth Capital Partners announced that it has acquired an 18% strategic interest in ASX-listed diversified real estate funds management platform, Elanor Investors Group. Rockworth and Elanor have a combined AUM of more than $2bn.
Transaction details and a substantial shareholder notice have been lodged by Elanor with the Australian Securities Exchange (ASX).
Rockworth’s 18% interest in Elanor has been acquired via an acquisition of 14.4 million stapled securities from existing security holders and a placement of 3.5 million new fully paid stapled securities at a price of A$1.85 per security. This placement is equivalent to a 3.5% stake in Elanor post completion.
Following settlement of the transaction, Rockworth will become Elanor’s largest shareholder alongside other institutional investors, and Lim Kin Song will be appointed to the Elanor Board of Directors. Securing this interest in Elanor, and establishing a non-exclusive strategic partnership, supports Rockworth’s objective to identify high-calibre capital partners and co-investors to accelerate its expansion in Australia and the broader APAC region.
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With Elanor’s A$1.35 billion in AUM managed through its listed fund management platform, including separately listed Elanor Retail Property Fund (ASX:ERF) and private funds including institutional investment partnerships, Rockworth has now diversified its exposure into listed property funds and the hotel sector.
In addition to Rockworth’s ordinary operating activities, the strategic investment in Elanor will allow Rockworth to broaden its network of partners in Australia, and work with Elanor’s experienced management team to jointly explore value-add investment opportunities. The partnership will also strengthen Elanor’s capital raising capabilities and provide access to Rockworth’s network of investors within the APAC region.
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Lim Kin Song, Chief Executive Officer, Rockworth, said: “We are delighted to partner with Elanor through the acquisition of a strategic stake in their funds management platform. We look forward to working with Elanor to jointly grow our fund management businesses by targeting new assets with value-add potential and co-investment opportunities that will complement our current investment activity.”
“The transaction demonstrates Rockworth’s long-term commitment to the Australian commercial real estate market while we continue to seek further growth in the broader APAC region, especially in developed economies that present opportunities to deliver strong risk-adjusted returns.”
Glenn Willis, CEO of Elanor Investors Group, said: “We welcome Rockworth as a strategic investor in Elanor and look forward to collaborating with them on new funds management opportunities for the Group. We will be exploring a range of real estate investment management initiatives with Rockworth in the near term.”
“The strategic alliance with Rockworth further increases the capital raising capability of the Group following a number of global and domestic institutional capital partners that have invested in Elanor managed funds over the last 12 months.”
“Strong, diverse and stable capital partners are important to achieving the Group’s significant growth objectives. We are well positioned to take advantage of our growing pipeline of real estate opportunities across the Group’s sectors of focus.”
Lazard acted as Rockworth’s financial advisor and Gilbert + Tobin acted as Rockworth’s legal advisor on the transaction.
Source: Rockworth Capital Partners