Lederer highlights Elanor’s operational struggles, commercial property fund decline in revised bidder's statement
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More news: Lederer group has expressed significant doubts regarding Elanor Investor Group’s ability to keep operating, stating in a revised takeover statement for its commercial property fund that its recently released FY24 results “quite frankly, are a disaster”.
The revised bidder’s statement makes no change to the all-cash 70 cents per security offer to take over the Elanor Commercial Property Fund (ECF), but now includes highly critical commentary about the group’s finances.
Lederer originally announced its takeover intentions on 4 August, prior to the release of ECF’s FY25 results and Elanor Investor Group’s FY24 results.
Lederer also flagged concerns with ECF’s “decline in several key metrics over the last reporting period” including a net tangible asset per security decline of 17.7% over FY25. The bidder’s statement also highlights declines in occupancy rate and funds from operations per weighted average stapled security.
Lederer also flagged that based on Elanor’s disclosures, “it appears it needs to address nine major issues” by November 2025 to continue operating.
“There is no certainty that Elanor will be able to achieve any or all of these outcomes, many of which are interdependent,” the bidder’s statement reads.
ECF shares were up 1.43% by 1:16pm AEST.
Lederer Group to lodge new bidder's statement for Elanor fund
The news: The Lederer Group is set to lodge a replacement bidder's statement after the Takeovers Panel declined to conduct proceedings against the family office with an application brought by Elanor Fund Management.
The context: Elanor’s application said Lederer’s bidder’s statement to acquire Elanor Commercial Property fund (ECF) “contained material information deficiencies”.
The Takeovers Panel said both parties had taken steps to negotiate and finalise amendments to the bidder’s statement, addressing all disclosure concerns raised in the application.
Lederer will be lodging a replacement bidder’s statement with its amendments.
ECF is currently in a trading pause pending a further announcement.
Lederer is looking to acquire ECF as it has been unhappy with the governance and performance of the fund. However, Elanor has said the Lederer’s offer is "opportunistic" and has recommended that shareholders reject the offer.
