Elanor Investors Group (ASX:ENN) has agreed to facilitate the orderly transition of investment and property management of the Elanor Commercial Property Fund to Lederer Group, following the latter's move to convene an extraordinary general meeting of ECF securityholders.
The EGM will vote on a resolution to remove Elanor Funds Management as the Fund’s Responsible Entity and appoint Evolution Trustees in its place, with Lederer Group confirming its intention to vote its 43% equity holding in favour.
If approved, Elanor will terminate its current investment and property management agreements, which include provisions for compensation upon a change of responsible entity without its consent.
The group has agreed to receive a reduced termination payment of $8.5 million, payable by the Fund. Evolution Trustees will then establish new management arrangements with LDR Capital, a Lederer Group entity.
Lederer Group said the proposed transition is expected to deliver significant benefits to ECF investors, including a reduction of approximately $1 million annually in management fees and costs, the appointment of an independent responsible entity, and improved alignment between the fund manager and investors.
Tony Fehon, Managing Director of Elanor, praised the Fund’s performance under Elanor’s stewardship since its 2019 IPO, noting consistent distributions and significant contributions, including an $8.4 million ex-gratia payment related to the 2022 acquisition of 19 Harris Street.