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Elanor Hotel Accommodation Fund targets 8.0%+ distributions

Core Property has reviewed the Elanor Hotel Accommodation Fund, the latest unlisted property fund offering by Elanor Funds Management Limited.

The Fund provides an opportunity to invest in a diversified portfolio of hotel accommodation properties across Australia. The Manager is targeting earnings growth for the portfolio over the next 3 years, following the impacts of COVID-19 in 2020/2021.

The Manager is seeking to raise $92.7M through the issue of 92.7M units priced at $1.00 per unit. The key aspects of the Offer include:

  • A portfolio of 14 hotel accommodation properties, with a focus on the luxury and regional market segments, valued at $350M. The Manager is looking to grow the portfolio to over $500M in 3 years, with the potential for a liquidity event via portfolio sale or ASX listing.
  • Forecast distributions of 8.0% - 11.4% p.a. over three years.
  • A Distribution Guarantee by the Manager for a minimum 8.0% p.a. (annualised) from Allotment Date until 30 June 2022.
  • An initial NTA of $0.97 per unit.
  • The Offer is available to wholesale and sophisticated investors.

Core Property has rated the Fund as RECOMMENDED.