Elanor Commercial Property Fund (ECF), an externally managed real estate investment trust that invests in Australian commercial office assets, has advised its securityholders to reject the unsolicited off-market takeover offer from the Lederer Group. The offer, made by LDR Assets Pty Ltd, proposes to acquire all stapled securities in ECF for $0.70 cash per security, adjusted for any distributions declared after the June 2025 quarter.
The Independent Board Committee (IBC) of ECF has unanimously concluded that the Takeover Offer is not beneficial to ECF securityholders. They consider the offer opportunistic and believe it materially undervalues ECF. The IBC also points out that the offer price represents only a minimal 5.3% premium to the closing price on August 1, 2025 and a discount to the premium provided in comparable transactions. The IBC stated that the offer does not reflect the fundamental value of ECF’s high-quality portfolio or include an appropriate premium for control.
The ECF IBC also raised concerns about the Lederer Group’s management capabilities and track record, particularly if full control is not achieved. The Committee has determined that further engagement on the Takeover Offer is not in the best interests of securityholders and will prepare a Target Statement that includes a detailed analysis of the offer and a formal recommendation. Securityholders are advised to take no action until they have reviewed the Target Statement.
Elanor Commercial Property Fund has appointed Ord Minnett Corporate Finance as independent financial advisor and Arnold Bloch Leibler as legal advisor. The ECF IBC affirms its commitment to maximizing value for all securityholders and will continue to evaluate all strategic options. Further information can be obtained by contacting Elanor Funds Management or Sodali & Co.
