Family office Lederer Group has progressed its takeover bid for the Elanor Commercial Property Fund (ECF), lodging a bidder’s statement with ASIC as it says the fund has been “unable to agree” on negotiation terms.
Lederer Group is one of Australia’s largest family offices and holds $1.2 billion in real estate assets, already holds a 27.5 per cent interest in the fund and is urging shareholders to back its offer.
On 4 August, Lederer made an off-market takeover bid for ECF where ECF unitholders would receive 70¢ cash for each ECF security held, representing a 5.3 per cent premium to the last closing price of $0.665 on 1 August 2025.
As part of this, it requested the responsible entity of ECF should be retired due to an alleged lack of independence as well as significant enhancements made to the investment management agreements.
It is also concerned the investment strategy of the fund will move beyond its Australian remit to focus on pan-Asian activities with an intention to acquire 100 per cent of Singapore-based real estate investment manager Firmus Capital. If a deal proceeds, Lederer said it could result in a change of ECF control, dilute existing ECF shareholders and have a material negative impact on future ECF distributions.
Issuing a statement on 20 August, Lederer said ECF had been “unable to agree terms” during discussions regarding these requests despite ECF agreeing on 7 August to set up an independent board committee (IBC) led by independent directors Kathy Ostin and Ian Mackie.
Chairman Paul Lederer said: “Let’s just call a spade a spade. We don’t understand how any of the directors of the responsible entity can put their hand on their heart and genuinely call themselves independent. Our interactions and experiences with members of the Elanor board (including the IBC) to date suggest this would be a challenge.
“We have no interest in supporting any potential transaction between ECF and Firmus that would dilute existing shareholders. Equally, we have no interest in being part of any broader pan-Asian strategy.”
No competing offer has been made, and Lederer said the likelihood of a competing proposal is low.
