along with Moelis Australia, which has since rebranded as MA Financial.
“We’ve conducted a number of formal strategic reviews on it, to work out how we can deliver security holder value by closing that gap between the security value and NTA,” Elanor managing director Glenn Willis told“Because it is consistently trading below NTA, like all retail REITs, we weren’t able to grow it and therefore liquidity was low. What we’ve decided to do is basically privatise ERF.”
The delisting of Elanor’s retail fund involves several steps. Elanor plans to sell one of its shopping centres, Tweed Mall, for $87 million into a single asset syndicate, managed by Elanor, with the proceeds to be returned to investors at 36¢. Elanor would then launch a buyback of the property trusts securities at 79¢.
Investors could subsequently trade out of the fund at NTA, through a redemption window capped at 20 per cent of funds annually.For investors who remain in the unlisted fund, the value of the deal, including the special distribution, is around $1.24. For those who exit through the buyback, the value is around $1.15 per security, a 7.9 per cent premium to the current trading price.