Redcape Hotel Group (Unlisted fund)

Redcape Hotel Group (Unlisted fund)

Access a $1.40 billion portfolio of high-quality Australian hotels1

Regular and growing income distributions

Targeting quarterly income

MA Hotel Management (MAHM) is focussed on continually improving the performance of the venues to deliver investors with regular and growing cash distributions

Potential for long-term capital growth

Potential for long-term capital growth

Ownership of the land and operation of the businesses offers MAHM the ability to readily invest in opportunities that add value to the venues

Managed by an experienced hotel operator

Diversified portfolio of high quality hotels

Access to a multi-asset portfolio diversified by location, sub sector and earnings mix

 

Hotels are high volume, defensive and cash generative businesses underpinned by diverse earnings profiles, offering investors the potential for regular and growing distributions and capital growth.

 

The Fund provides investors with a unique opportunity to gain exposure to both hotel operating businesses in addition to freehold property ownership.

 

Fund Overview

The Fund aims to provide investors with regular and growing cash distributions and capital growth by investing in and actively managing a diversified portfolio of high-quality Australian hotels and alternative use real estate assets.

The Fund's investment strategy is to:
  • Invest in high-quality community hotels - acquire venues in well-established locations with easy access and high passing traffic, underpinned by sustainable cashflows with opportunities to add value
  • Actively manage the portfolio - by constantly assessing the portfolio and targeting investment opportunities that deliver positive risk-adjusted value to the Fund
  • Leverage MA Hotel Management expertise - to improve the performance and value of hotel assets.

Watch the Fund video

Watch this short video to hear from Fund Manager, Daniel Hargraves, as he provides an overview of the Fund including its benefits and investment strategy, as well as explaining some of the advantages of investing in hospitality assets.

Fund Facts

Investment objective

To provide investors with regular and growing cash distributions and capital growth over the investment term by investing in and actively managing a diversified portfolio of high-quality hotels and alternative use real estate opportunities with the potential for refurbishment or redevelopment to increase land utilisation.

Minimum Initial Investment
AUD $10,000
Portfolio Manager

MA Hotel Management Pty Ltd

Management fee
0.50% p.a.
Minimum additional investment
AUD $1,000
Performance Fee
20.0% of the outperformance amount above a return hurdle of 10.0% p.a.
Distribution frequency
Quarterly2
Liquidity
Quarterly (capped liquidity)3
APIR
MAA8238AU
ISIN
AU60MAA82380
Platform Availability
HUB24, Macquarie Wrap IDPS, Mason Stevens, Netwealth, Powerwrap
Distribution Reinvestment Plan (DRP)

A DRP is available and provides Unitholders with the option of automatically reinvesting their distributions in additional Units of the Fund.

Download the DRP booklet for more information.

Unit Price
$1.6770As at 4 October 20224
Withdrawal Price
$1.5931As at 30 September 20225
DRP unit price
$1.6351As at 30 September 2022

 

2. Subject to declaration from the Responsible Entity.

3. Withdrawal requests are subject to the Product Disclosure Statement and may be delayed or suspended in accordance with the procedures set out in the Product Disclosure Statement and the Fund Constitution. Note that up to 12 months is allowed under the constitution to satisfy withdrawal requests. Refer to the Product Disclosure Statement for details on withdrawals from the Fund. Before making an investment decision, always read and understand the Product Disclosure Statement and all other relevant or updated information regarding the Fund. The Responsible Entity will provide liquidity initially on a quarterly basis through a Liquidity Facility (Liquidity Facility) on each ‘closing date’ commencing at the quarter ending 30 June 2022. The Liquidity Facility is limited to 2.5% of the Fund’s Directors’ NAV as at each relevant quarter end. Refer to the Product Disclosure Statement for further details on the Liquidity Facility.

4. Unit price is as at 4 October 2022 for applications accepted in the month of September 2022.

5. Withdrawal price is as at 30 September 2022 for redemptions included in the September quarter-end liquidity facility. The withdrawal price is inclusive of a 5% discount. The discount will be reduced to 2.5% for the December 2022 quarter-end liquidity facility and for liquidity facilities thereafter. Refer to the PDS for further details.

The Manager

Portfolio assets

Central Hotel

Central Hotel

Shellharbour, NSW

Eastwood Hotel

Eastwood Hotel

Eastwood, NSW

El Cortez Hotel

El Cortez Hotel

Canley Heights, NSW

Gladstone Hotel

Gladstone Hotel

Dulwich Hill, NSW

Keighery Hotel

Keighery Hotel

Auburn, NSW

Kings Head Tavern

Kings Head Tavern

South Hurstville, NSW

Landmark Hotel

Landmark Hotel

Eastwood, NSW

Mt Annan Hotel

Mt Annan Hotel

Mt Annan, NSW

Mt Druitt Cedars Tavern

Mt Druitt Cedars Tavern

Emerton, NSW

O'Donoghues Irish Pub

O'Donoghues Irish Pub

Emu Plains, NSW

Prospect Hotel

Prospect Hotel

Prospect, NSW
Red Lantern Hotel

Red Lantern Hotel

Bankstown, NSW

Revesby Pacific Hotel

Revesby Pacific Hotel

Revesby, NSW
St Marys Hotel

St Marys Hotel

St Marys, NSW

Unanderra Hotel

Unanderra Hotel

Unanderra, NSW

Vauxhall Inn

Vauxhall Inn

Granville, NSW

Wattle Grove Hotel

Wattle Grove Hotel

Wattle Grove, NSW
Willoughby Hotel

Willoughby Hotel

Willloughby North, NSW
The Australian Hotel & Brewery

The Australian Hotel & Brewery

Rouse Hill, NSW
The Figtree Hotel

The Figtree Hotel

Figtree, NSW

Cabramatta Hotel

Cabramatta Hotel

Cabramatta, NSW

Campbelltown Hotel

Campbelltown Hotel

Campbelltown, NSW
Crescent Hotel Fairfield

Crescent Hotel Fairfield

Fairfield, NSW

Crown Hotel Revesby

Crown Hotel Revesby

Revesby, NSW
Eastern Creek Tavern

Eastern Creek Tavern

Eastern Creek, NSW

Risks

All investments are subject to risk, which means the value of your investment may rise or fall. Before making an investment decision, it is important to understand the risks that can affect the value of your investment.

There is an extensive regulatory regime that affects many aspects of the operation of the Fund's assets including:

  • licensing requirements;
  • regulations of electronic gaming machines;
  • Anti-money laundering laws; and
  • workplace health and safety regulations.

A failure by the Responsible Entity to comply with any of the regulatory regimes and associated licenses which apply to its operations may significantly and adversely affect its reputation and financial performance and any Unitholder's investment in the Fund.

Other general risks of an investment in the Fund include but are not limited to:

  • the inability of the Fund to meet redemption requests;
  • the risk that the Fund does not achieve its investment objective; and
  • the risk that Unitholders may lose some or all of their capital invested in the Fund.

Further information on risks associated with the Fund is detailed in the Product Disclosure Statement.

How to Invest

1.

Download the Product Disclosure Statement and check for PDS updates

2.

Download the Application Form or Apply online

 

3.

Submit the application form and any required identification documents.

Application cut-off is before 2pm on any Business Day. Applications will be processed using the Application Price applicable on the first Business Day of the following month. Redemption cut-off is before 2pm 45 days prior to the last day of the quarter

Email
Boardroom Client Service Team
maclientservices@boardroomlimited.com.au
Mail
Post: GPO Box 3993 Sydney NSW 2001
Hand deliver: Level 12,225 George Street Sydney NSW 2000
Fax
+61 2 9252 1987
Phone
1300 135 167 (within Australia)
+61 2 8023 5415 (outside Australia)

Resources

Design and Distribution Obligation

Issuers and distributors of financial products must comply with the Design and Distribution Obligations (DDO) from 5 October 2021. Distributors are required to notify the product issuer of any significant dealing in a product that is not consistent with the target market determination and any complaints received in relation to the Fund. For more information regarding distributors’ reporting obligations, please refer to the Fund’s Target Market Determination

Templates

You can use the Financial Services Council (FSC) reporting templates, or the templates provided below to report significant dealings and complaints to the Responsible Entity.

Significant Dealings Report
DDO Complaints Report

Email

Any significant dealings or complaints can be reported to: DDO@mafinancial.com

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Disclaimer

1. As at August 2022.

6. Total MAHM portfolio includes: Redcape: 35 venues, MA Hotel Brunswick Fund: 1 venue, MA Taylor Square Fund: 2 venues, MA Beach Hotel Fund: 1 venue, MA Hotel Bendigo Fund: 1 venue.

7. 30 freehold going concerns and one leasehold going concern.

8. Seven freehold going concerns and one leasehold going concern.

9. Revenue for the Full Year ending 30 June 2022. Includes all funds managed by MA Hotel Management.

 

This website has been prepared by Redcape Hotel Group Management Limited ACN 610 990 004 the issuer and responsible entity (Responsible Entity) for the stapled securities in the Redcape Hotel Trust I (ARSN 629 354 614) and Redcape Hotel Trust II (ARSN 629 354 696) (Fund).

The information contained on this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making any investment decision you should consider obtaining professional investment advice that takes into account your personal circumstances and should read the current product disclosure statement (PDS) of the Fund. The PDS for the Fund is available at https://mafinancial.com/asset-management/retail-funds/redcape-hotel-group/. Neither the Responsible Entity nor any member of the MA Financial Group Limited guarantees repayment of capital or any particular rate of return from the Fund. All opinions and estimates included in this document constitute judgments of the Responsible Entity as at the date of this document and are subject to change without notice. Past performance is not a reliable indicator of future performance. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Whilst the Responsible Entity believes the information contained in these materials are based on reliable information, no warranty is given to its accuracy and persons relying on this information do so at their own risk. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Statements contained in this document that are not historical facts are based on expectations, estimates, projections, opinions and beliefs of the Responsible Entity as at the date of this document. Such statements involve known and unknown risks, uncertainties and other factors, and should not be relied upon in making an investment decision. These views may not necessarily reflect the views of any other entity in the MA Financial Group Limited group. Any references in this document to targeted or projected returns of the Fund are targets only and may not be achieved. Any investment in the Fund is subject to the terms and conditions of the PDS.

Investments in the Fund are subject to risk including possible delays in payment or loss of income and principal invested. This information is intended for recipients in Australia only.

The Responsible Entity's address is L27, Brookfield Place, 10 Carrington Street, Sydney NSW 2000. The Responsible Entity, its related bodies corporate, the Responsible Entity's directors and employees and associates of each may receive remuneration in respect of advice and other financial services provided by the Responsible Entity. The Responsible Entity has entered into various arrangements with MA Hotel Management Pty Ltd in connection with the management of the financial products referred to in this website. In connection with these arrangements MA Hotel Management Pty Ltd may receive remuneration or other benefits in respect of the financial services it provides.