Elanor rejects billionaire Lederer’s claims in $276m fund battle

Paul Lederer. Picture: Nic Walker

Embattled property funds manager Elanor Investors Group has fired back at billionaire Paul Lederer’s moves to take over its $276m listed office fund.

The tycoon made a play for the listed Elanor Commercial Property Fund this month, declaring “enough is enough” as the manager has battled to stay afloat, and accusing the company of putting its own interests ahead of investors.

Mr Lederer, who came to the office fund’s rescue in October 2024, made a full takeover play, valuing the trust at about $285m.

The billionaire is best known as a Western Sydney Wanderers co-owner, though he stood down as the club’s chairman last year.

His family has interests totalling about 27.5 per cent of the fund, known as ECF, and has been behind billions more in property developments and investments.

Elanor said it would set up an independent board committee to manage any potential conflicts of interest between its interests and those of fund security-holders. It also set up a board committee to represent its interests as the fund’s investment manager and the owner of the responsible entity.

The latter has called out what it terms a number of “inaccurate assertions” made by Lederer Group.

Elanor said it had already made moves to enhance its corporate governance by establishing a separate independent trustee and responsible entity board for its managed funds, adding to its strengthened governance measures put in place last September.

“It is unclear from Lederer’s proposal who is proposed to manage ECF in the future and it is therefore impossible to assess the capabilities of a potential replacement RE or manager,” the company said.

“Elanor is considering whether Lederer’s proposals in relation to the ongoing management of ECF are consistent with existing arrangements between the parties.”

Elanor said it had no intention to vary the current ECF investment strategy, which was to only acquire properties within Australia. “Assertions made by the Lederer Group in its Proposed Takeover Offer in this regard are factually incorrect,” it said.

Elanor said it was advancing moves to expand its tie-up with Singapore’s Rockworth Capital Partners in which the offshore company will invest up to $125m into the local manager. Elanor will also acquire the Firmus investment business.

Elanor said a fund it managed had finalised the sale of Waverley Gardens shopping centre to Charter Hall and it would receive some proceeds. The company is also handing over the running of the Challenger Life Company real estate portfolio to Charter Hall.

The Elanor Hotel Accommodation Fund has also completed the sale of the Mayfair Hotel Adelaide, with the proceeds to go to paying down debt.