Abu Dhabi Investment Council (ADIC) is participating in Elanor Investors Group鈥檚 purchase of Challenger鈥檚 A$3.4bn (鈧�2.1bn) Australian real estate fund management platform.
ASX-listed Elanor said it had secured the transfer of the ADIC mandate as part of the acquisition.
The Sydney-based boutique fund manager entered an agreement to buy the Challenger real estate business in April, and simultaneously unveiled a strategic partnership with Challenger, an Australian financial services group.
Under the earlier arrangement, Challenger would have been issued 27.4m Elanor securities, equating to an interest of up to 18.2%, to become Elanor鈥檚 largest shareholder.
With the investment from ADIC, Elanor said Challenger鈥檚 holding would be revised to 13.7%.
Post-transaction, ADIC, the investment arm of the Government of Abu Dhabi, would hold a 3% interest in Elanor, with an option to lift the stake to 7.7%.
鈥淭he options vesting milestones are linked to ADIC committing a further A$500m in assets under management (mandate to Elanor),鈥� said the company.
Elanor鈥檚 chief executive officer, Glenn Willis, said: 鈥淲e are pleased to have secured transfer of the ADIC mandate, and ADIC becoming a substantial investor in ENN (Elanor).
鈥淲e look forward to delivering strong investment returns for ADIC鈥檚 real estate investments, and growing AUM for the Elanor Group.鈥�
Last August, ADIC鈥檚 sister organisation, Abu Dhabi Investment Authority, bought into a Melbourne-based alternative asset manager, Qualitas, potentially owning up to a 10% interest in the firm.
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