Elanor Secures $125M Rockworth Investment, Eyes Pan-Asian Growth
Elanor Investors Group announces a $125 million recapitalisation through an expanded alliance with Rockworth Capital Partners, including the acquisition of Singapore’s Firmus Capital and a strategic shift towards Pan-Asian real estate markets.
- Rockworth to invest $125 million via debt, perpetual notes, and warrants
- Acquisition of Singapore-based Firmus Capital with S$658 million AUM
- Rockworth’s ownership to rise to nearly 48%, Su Kiat Lim to hold 13.6%
- Termination of Challenger Life Mandate and related agreements
- Focus on stabilising Australian business and expanding into Asia
Strategic Recapitalisation and Alliance Expansion
Elanor Investors Group has unveiled a comprehensive recapitalisation and strategic realignment plan anchored by a $125 million investment from long-term securityholder Rockworth Capital Partners. This capital injection, comprising a $70 million senior secured debt facility, $55 million in perpetual subordinated notes, and 30 million low-exercise-price warrants, aims to stabilise Elanor’s balance sheet and reduce gearing to a targeted 20–35% range.
The expanded alliance with Rockworth, originally formed in 2019, is designed to underpin Elanor’s growth ambitions in both Australia and Asia. The partnership will facilitate a capital-led expansion strategy, leveraging Rockworth’s expertise and regional presence to unlock new opportunities across key real estate sectors.
Acquisition of Firmus Capital and Ownership Changes
A pivotal element of this strategic reset is Elanor’s acquisition of Firmus Capital, a Singapore-based real estate investment manager with approximately S$658 million in assets under management. Firmus, majority-owned by Rockworth and led by CEO Su Kiat Lim, who also serves on Elanor’s board, will be fully integrated into Elanor’s platform. This transaction will be settled through the issuance of Elanor securities, further aligning interests.
Post-completion, Rockworth’s stake in Elanor will increase substantially from 11.8% to approximately 47.9%, while Su Kiat Lim will become a significant securityholder with a 13.6% holding. This reshaping of ownership underscores Rockworth’s commitment and influence over Elanor’s future direction.
Unwinding Challenger Life Mandate and Business Refocus
Concurrently, Elanor is winding down its strategic partnership with Challenger Life Company Ltd, ceasing related mandates and transitioning management responsibilities by October 2025. This move allows Elanor to streamline its operations and focus on its core competencies.
The Group’s redefined business strategy prioritises stabilising its Australian operations while aggressively pursuing Pan-Asian growth. The focus sectors include office and retail, complemented by targeted expansion into logistics, healthcare, and leisure markets across Asia. This approach aims to leverage Elanor’s existing strengths and Rockworth’s regional footprint to capture emerging opportunities.
Governance and Future Outlook
Governance adjustments will follow, with Rockworth and Su Kiat Lim gaining rights to nominate directors to Elanor’s board, reflecting their increased stakes. Meanwhile, Elanor is actively searching for a new CEO to lead the Group through this transformative phase.
Elanor continues its asset realisation program to reduce gearing and improve liquidity, including the imminent sale of the Stirling Street property. The Group anticipates completing the recapitalisation and acquisition transactions by early October 2025, pending regulatory and securityholder approvals, with plans to lift its ASX suspension following the finalisation of FY24 financial results.
Bottom Line?
Elanor’s recapitalisation and strategic pivot set the stage for a new growth chapter, but execution risks and integration challenges remain.
Questions in the middle?
- How will Elanor integrate Firmus Capital’s operations and culture effectively?
- What impact will Rockworth’s near-majority ownership have on Elanor’s strategic independence?
- Can Elanor’s asset realisation program sufficiently reduce gearing to meet covenant requirements?
