Australian investment firm Lederer Group, controlled billionaire investor Paul Lederer, has offered A$250m (€140m) to acquire Elanor Commercial Property Fund (ECF).
The Lederer Group, which already holds a 27.5% stake in ASX-listed ECF after last year’s A$74m capital injection to support the fund, is now offering to acquire the remaining shares it doesn’t own for 70 cents each in cash, a 5.3% premium to its last closing price.
ECF owns a A$500m portfolio of office properties, including a half-stake in office complex in Pyrmont, an inner-city suburb in Sydney.
The commercial property fund is managed by its parent, Elanor Investors, which is struggling under debt burden. Last week the group announced a A$125m rescue plan from its Singapore-based backer, Rockworth Capital Partners. Elanor has also lost the right to manage a A$3bn property portfolio from financial group, Challenger, which is expected to go to Charter Hall.
Paul Lederer, chairman of the Lederer Group, said: “There is an expression: enough is enough. Challenger is leaving Elanor for a good reason. I do not believe Elanor’s obsession with saving itself at any cost is good for ECF investors or the industry.
“I want ECF investors to know I have been listening to you. If you want to sell your ECF securities, I will buy them at the best price they have traded in the last 12 months,” he said in a statement that was highly critical of Elanor Investors Group.”
The ECF board said it is reviewing the Lederer Group’s offer and advised shareholders not to take any action until they receive the board’s official recommendation, adding that it would continue to provide market updates as required.
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