Elanor Commercial Office Fund (ECF) has received A$74m (€44m) equity injection from The Lederer Group.
Lederer Group, controlled by Paul Lederer, one of Australia’s wealthiest businessmen, has agreed to buy a 12.6% stake in the fund for A$23.9m, which will become the single unitholder in the trust with 14% interest. The investor has committed a further A$50m to back the fund.
ECF owns a A$500m portfolio of office properties, including a half-stake in 19 Harris Street, Ultimo, in inner Sydney suburb, acquired during the peak of the market for A$185m in 2022, but its valuation has fallen since, causing the fund to breach its lending covenant.
Lederer Group’s capital pledge will help support the fund which is exploring a rights issue to raise A$40m to reduce its gearing.
Elanor has also restructured its management with its chief executive director, Glen Willis, stepping down and former Macquarie executive Tony Fehon moving in as interim managing director.
Elanor chairman Ian Mackie said with these measures the company aimed to simplify the business and the best position the group to deliver strong fund, mandate, and securityholder performance over the longer term.
“Elanor has proactively engaged with its strategic institutional capital partners who have confirmed their support.”
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