Elanor Commercial Property Fund's (ASX:ECF) independent board committee recommended that its security holders reject an off-market takeover bid by LDR Assets, a trustee for the LDR Assets Trust, noting that the offer "is not compelling and materially undervalues" the fund, according to a Friday Australian bourse filing.

It also said that the bid was opportunistic, citing a view that the "real estate market for commercial office assets has reached, or is near, the bottom of the cycle and is showing signs of recovery."

An independent expert concluded that the offer is neither fair nor reasonable, per the filing.

The Lederer Group had proposed to acquire all of Elanor Commercial Property Fund's securities for AU$0.70 cash per stapled security.