Wednesday 04 October 2017 by FIIG Research At FIIG

New Issue – Elanor Investors Limited


New Issue – Elanor Investors Limited to issue up to $40m unsecured fixed rate notes


The Issuer

Elanor Investors Group (Elanor) is an Australian real estate funds management group with $841m of managed funds and on balance sheet investments as at 30 June 2017. The group’s core investment focus is in the retail and commercial real estate and hotels, tourism and leisure sectors. In addition, special situations investments incorporate assets that exhibit strong real estate backing that may fall outside of the sectors in which the group currently focuses.

Currently, Elanor has a diversified exposure across seven managed funds and four direct investments: 42% retail, 34% hotel, 14% commercial, 5% tourism and 4% development. The group has a current market capitalisation of approximately $190m having being listed on the ASX since July 2014.

Since listing, Elanor has grown its total funds under management and balance sheet investments from $173m to $841m as at 30 June 2017, comprising direct balance sheet investments of $159m and funds under management (excluding direct investments) of $682m.

The key strategic objective of the group is to grow funds under management by identifying and originating investments that deliver strong returns for both the group’s funds management capital partners and security holders.

Elanor has a strong investment track record and has a well-resourced and scalable platform with capacity for growth. The group is strongly asset backed with net tangible assets of $148.4m as at 30 June 2017.

For more information about Elanor, please visit their website or go to (ASX: ENN). 

The Offer

Elanor has today launched the issue of a five year, unsecured fixed note issue with a fixed interest rate, available exclusively through FIIG Securities Limited. Elanor is seeking to raise $35m to $40m to acquire interests in Elanor property funds, to acquire, or for capital expenditure on, real estate held by Elanor or another 100% owned member of the group and for general corporate purposes.

The Notes offer a fixed return (payable semi-annually in arrear) of 7.10% per annum. Investors have a put option at 101% of par upon a “change of control” of the issuer. Elanor may call some or all of the Notes prior to maturity at a premium to the Note face value as determined in the preliminary Information Memorandum.

FIIG is the Sole Lead Arranger for this transaction and the Notes are available to wholesale clients only (pursuant to the Corporations Act 2001 (Cwlth)), with an initial minimum subscription of $50,000, and increments of $1,000 thereafter. 

Issuer Elanor Investors Limited
Type of security Unsecured notes
Coupon 7.10%
Maturity October 2022
Offer size $35,000,000 - $40,000,000