Independent board committee recommends to vote down Lederer takeover of Elanor property fund

The news: Despite agreeing to transition the management of Elanor Commercial Property Fund (ECF) to family office the Lederer Group, ECF’s independent board committee has recommended shareholders vote against the proposal.

The context: The committee said that while Lederer was likely to take control of the listed fund due to its 42.68% holding, the proposal was “not in the best interest of ECF securityholders”.

Reasons given by the committee included:

• Lederer having no track record of managing A-REITs;
• The compensation amount to be paid to ECF would reduce the fund’s net tangible asset, could impact the ability to meet FY26 distribution guidance and could lead to exceeding the fund’s target gearing range;
• No payment to ECF securityholders for the transfer of management rights; No competitive process for ECF’s management rights;
• Exposure to additional risks such as operational disruption, transition costs and contractual risks; and
• Uncertainty that LDR Capital could be appointed as the replacement manager.

Earlier this month, Elanor Investors Group told Capital Brief it was disappointed it had lost control of the fund.