‘Enough is enough’: Takeover bid made for commercial property fund
Family office Lederer Group has made an off-market takeover bid for ASX-listed Elanor Commercial Property Fund (ECF).
The firm, which 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 which it acquired in a strategic partnership, and is now seeking to acquire the remaining shares.
Under the offer, 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.
The takeover bid came days after ECF issued a statement on 28 July around business stabilisation of Elanor Investors Group and an expansion of a existing strategic alliance with Rockworth Capital Partners that would invest $125 million to stabilise the balance sheet, reduce gearing and allow Elanor to focus on fund management activities.
Lederer Group said its reasons for making the bid include a lack of accountability by the Elanor board, a lack of oversight that led to its ASX suspension in August 2024, and a lack of transparency around the Challenger Life deal.
In July 2023, Elanor acquired the $3.4 billion real estate fund management business of Challenger for $38 million and became the investment manager for Challenger Life Company’s commercial real estate portfolio. But last month, Elanor announced this deal would be wound up.
“Elanor, Challenger and Challenger Life have entered into a mutual agreement to unwind the strategic partnership and related investment management arrangements that was announced in July 2023. As part of an orderly transition of arrangements, Elanor will continue to manage the CLC real estate portfolio until 15 October 2025 and support the transition of the portfolio to a new manager,” Elanor said in a statement.
Responding, Lederer said: "[There is a ] lack of transparency around why Challenger Life, a transaction which was consummated less than two years ago has been unwound. It would appear that Challenger Life, a significant institutional investor, was not satisfied with the service offered by Elanor which led to their departure."
Finally, Lederer expressed concern around Elanor’s desire to become a pan-Asian fund manager which it believes will substantially alter the holdings and exposure of the ECF.
Elanor announced last month it is seeking to acquire 100 per cent of Singapore-based real estate investment manager Firmus Capital which has $658 million in assets under management across retail and office properties. This deal would help Elanor to build on “Asian-based, capital led, growth opportunities in logistics, healthcare and leisure in select markets across the region”.
Lederer said: “There is an expression: enough is enough. Challenger is leaving Elanor for a 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, and it is my pleasure to provide this assistance to you.
“If you continue to invest alongside me, I promise you that my team and I will spend every day thinking about how to make YOU money. It will take time and patience you may not have. But I assure you we will put the focus where the focus needs to be – on ECF investors and their investment in ECF (not Elanor).”
In an ASX statement, ECF said it is “considering its response” to the bid and will keep the market and shareholders updated. Shares in ECF rose 3 per cent after the takeover bid was announced.
AUTHOR
Laura Dew
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