Rockworth Capital Partners announced today that it has acquired an 18 percent interest in ASX-listed Elanor Investors Group, as the Singapore-based private equity firm ramps up its presence in Australia.
The transaction, which involves purchases of both existing and new shares in Elanor, will make Rockworth the largest shareholder in the Sydney-based real estate investment firm, with the two investment managers together looking after more than $2 billion in assets under management.
The Singaporean firm already has a portfolio of 14 properties in Australia, with the company saying that the new investment supports its plan to expand its Australian footprint and investor base, as well as enabling it to diversify into hotels and value-add investments.
Singaporean Firm Grabs A$33M Stake in Australian Group
“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,” Rockworth CEO Lim Kin Song said in a statement.
Lim’s company is taking its stake in Elanor, which according to Mingtiandi calculations should be valued at over A$33.1 million ($23.7 million), by acquiring 14.4 million stapled securities from existing security holders, as well as through a placement of 3.5 million new fully paid stapled securities at a price of A$1.85 per security. The value of the new placement is equivalent to a 3.5 percent stake in Elanor post completion.
Following settlement of the transaction, Rockworth’s Lim will be appointed to Elanor’s board of directors, with the company terming its new relationship with the Sydney firm a non-exclusive strategic partnership. Rockworth indicated that the position in Elanor supports its objective of identifying high-calibre capital partners and co-investors to accelerate its expansion in Australia and the broader APAC region.
Taking an Opportunity to Diversify Down Under
In its statement, Rockworth indicated that Elanor’s listed fund management platform, including its separately listed Elanor Retail Property Fund, as well as the company’s private funds would help the Singaporean firm to diversify into listed property funds and hotel investments.
“We welcome Rockworth as a strategic investor in Elanor and look forward to collaborating with them on new funds management opportunities for the Group,” Glenn Willis, CEO of Elanor Investors Group, said. “We will be exploring a range of real estate investment management initiatives with Rockworth in the near term.”
Just yesterday Elanor Investors Group announced to the Australian stock exchange that it had established a new multi-asset accommodation fund, the Elanor Luxury Hotel Fund, which has been seeded initially with a pair of hotels valued at approximately A$99 million.
In its statement announcing the new fund, an Elanor representative said that it intended to acquire high investment value luxury hotels and add value through improved management and other means.
Rockworth’s Australian investments to date have focused on the office sector. The company also said that the partnership will strengthen Elanor’s capital raising capabilities and provide access to Rockworth’s network of investors within the APAC region.
Rockworth Part of Growing Singaporean Presence in Australia
In August of last year Rockworth acquired 100 Edward Street, a grade B office asset in Brisbane for over A$60 million, adding its fourth property in Australia’s Queensland state. That purchase came almost exactly one year after the Singaporean firm had purchased a 22-storey office building on Melbourne’s city fringe for A$98 million.
In another sign of the growing ties between Singaporean investors and Australian property assets, ARA Asset Management at the end of last month announced its A$97 million purchase of 133 Mary Street in Brisbane on behalf of one of its private funds.
In June 2018 ARA had closed on an S$77.2 billion acquisition of a 19.5 percent stake in ASX-listed Cromwell Property, in a deal which has a number of parallels with Rockworth’s investment this week.