Billionaire businessman Paul Lederer has intensified his campaign against Elanor Investors Group, demanding the appointment of a forensic accountant to examine what he alleges are excessive management fees drawn from the Elanor Commercial Property Fund (ECF) as reported in the Australian Financial Review.
Through his lawyers at McCullough Robertson, Lederer issued a formal ultimatum setting an October 21 deadline for Elanor to act, citing “serious irregularities” in related-party payments. The move follows his unsuccessful $285 million takeover bid for ECF, which closed last week with just over 42 per cent acceptances.
According to the letter, Lederer’s team believes the fees charged by Elanor and its controlled entities may exceed permitted limits, potentially breaching trust and management agreements. They also claimed previous responses from ECF directors “did not adequately address” these concerns, prompting the latest escalation.
If Elanor fails to meet the deadline, Lederer is expected to call an ECF unitholder meeting to vote on establishing an independent investigation into the fund’s governance, financial performance, and Elanor’s management role. Sources close to the Lederer camp suggest this could ultimately lead to a vote to remove Elanor as the fund’s responsible entity.
Elanor has rejected the allegations, with a spokesperson saying a detailed response will be released this week.
The standoff unfolds as Elanor pursues stability across its portfolio and partnerships. Earlier this year, the company expanded its hospitality footprint as Accor rebranded several hotels under Elanor’s management, strengthening its tourism and accommodation platform.
At the same time, other fund managers such as Monark have been broadening their capital base through new debt funds, reflecting continued investor appetite for property-backed opportunities despite market headwinds
Meanwhile, Elanor Investors Group itself remains suspended from ASX trading for over a year while working to secure a $125 million recapitalisation deal with Singapore’s Rockworth Capital. With a November 14 forbearance date from a major creditor approaching, Lederer’s legal team warned that failure to complete the recapitalisation could trigger an insolvency event affecting the wider Elanor group.
The confrontation underscores growing scrutiny over transparency, governance, and fiduciary accountability within Australia’s listed property trust sector — and may set a precedent for how investor activism shapes the next phase of commercial property fund management.
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