Elanor Commercial Property Fund (ASX:ECF) Entitlement Offer Announcement

Elanor Commercial Property Fund (ASX:ECF) is undertaking a fully underwritten 1-for-3.5 Entitlement Offer to raise approximately $52 million at an issue price of $0.58 per ECF security. The proceeds will be used to fund ECF's participation in the Harris Street Fund Capital Notes issuance and repay ECF debt and transaction costs. Entities associated with Lederer Group hold approximately 14.76% of ECF's existing securities on issue and have committed to take up their full entitlement, participate in the Oversubscription Facility, and to sub-underwrite the Entitlement Offer. The FY25 Distribution guidance of at least 7.5 cents per security is maintained.

Executive Commentary on Equity Raising and Harris Street Capital Notes

David Burgess, Fund Manager of ECF, stated, 'Participation in the Harris Street Capital Notes represents a compelling investment opportunity for ECF. The Capital Notes are expected to deliver a 12.5% return plus potential upside via a 10% share of any asset value appreciation and stabilize ECF's existing 49.9% interest in the Harris Street Fund. The Equity Raising will also reduce ECF gearing, providing additional funding headroom to support growth.'

Summary of Entitlement Offer and Future Outlook

Elanor Commercial Property Fund (ASX:ECF) is undertaking an Entitlement Offer to raise funds for participation in the Harris Street Fund Capital Notes issuance and debt repayment. The fund aims to reduce balance sheet gearing, provide funding flexibility, and support ongoing capex and leasing initiatives. The participation in the Capital Notes is seen as a compelling investment opportunity, and the fund's strategic partnership with the Lederer Group is reinforced. The fund's portfolio is near full occupancy, and strong leasing momentum continues for future expiries. ECF's key strategic objective is to provide strong risk-adjusted returns by investing in commercial office properties with sustainable competitive advantages.