Aussie office fund Elanor building sale falls through amid property sector stress (updated)

LDR Capital Property Fund I

12/10/2023 24:50

(Recasts paragraph 1, adds details and background in paragraphs
2-5)
       Oct 12 (Reuters) - Australian fund manager Elanor
Commercial Property Fund  ECF.AX  on Thursday said the buyer for
its Nexus Centre property in Brisbane would not go ahead with
the acquisition. 
    Quantana, the proposed buyer of the Brisbane property has
pulled out of the agreement on account of not being able to
raise capital, Elanor said in a statement.
    The ASX-listed retail property fund in August had announced
its intentions to sell the Nexus Centre and Limestone Street
properties for a gross price of A$72.7 million ($46.66 million).
    Elanor, however, in September said it had failed to sell the
Limestone Street property at Ipswich to Quantana, but was
progressing with the Nexus Centre deal for a gross price of
A$38.5 million.
    The property industry globally, and office building owners
in particular, are struggling as working from home and
e-commerce lead tenants to reconsider floor space just as higher
interest rates reduce building values and raise debt servicing
costs. 
    Quantana has not satisfied the capital raising condition,
Elanor said on Thursday, and is therefore not proceeding with
its acquisition of the Nexus Centre property. 

($1 = 1.5581 Australian dollars)

 (Reporting by Manvi Pant in Bengaluru; Editing by Shinjini
Ganguli and Rashmi Aich)