Oct 12 (Reuters) - Australian fund manager Elanor Commercial Property Fund 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)
