Elanor Investors Group terminates property fund management agreements
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The news: Elanor Investors Group has terminated the Elanor Commercial Property Fund management agreement following its removal as the responsible entity of the Elanor Commercial Property Fund (ECF) at the end of January.
The number: Elanor has agreed to receive a reduced compensation amount of $8.5 million on termination, payable by ECF.
The context: An extraordinary general meeting of ECF shareholders was convened on 30 January by Lederer Group.
Securityholders then passed a resolution to replace Elanor Funds Management with Evolution Trustees as the responsible entity for the fund. Elanor did not provide its consent to this change.
Elanor has now terminated the investment management agreement and property management agreement in accordance with its rights, which both entitle Elanor to compensation payment following the non-consensual change in responsible entity.
Lederer previously launched a failed takeover bid for the fund in August and eventually ended up with a 42.68% stake in the fund.
What they said: “We are proud of our achievements in establishing, operating and supporting ECF. Since the IPO of ECF in 2019, Elanor has delivered consistent quarterly distributions for ECF investors, and the Fund has performed strongly against its market peers,” Elanor managing director Tony Fehon said.
“We will continue to support an orderly transition of the Fund’s management, and we trust that Evolution Trustees and the Lederer Group will build on the strong foundation that Elanor established for the Fund in the best interests of ECF securityholders.”
The source: ASX
