Core Property has reviewed a new open-ended fund that invests in hotels/pub venues, a sector which is seen as relatively resilient and an integral part of Australian society.
The Fund is managed by Harvest Hotels Pty Ltd, a specialist fund manager of hospitality assets with a track record of investing in and managing hotel/pub venues since 2014.
The Fund aims to provide a diversified investment in hotel/pub venues, with:
- A strategy that targets pubs with a preference for food and beverage offerings as the main attraction for patrons, as well as gaming, accommodation and rental income.
- Initial assets include a well-established regional pub in Albury NSW, a recently refurbished metropolitan hotel in East Brisbane QLD and a regional leasehold venue currently under offer.
- A target distribution yield of 6.0% - 8.0% p.a. and a target IRR of 10% - 12% p.a. over the medium to long term (5-years).
The Fund is open ended and has an initial issue price of $1.00 per unit to acquire the first asset. The Offer is available to retail investors with a minimum subscription of $10,000.
Core Property has rated the Fund as RECOMMENDED.