We have entered into an agreement to acquire a large-scale Melbourne hotel, for a price of $96.0 million from Singaporean real estate group, Hiap Hoe Limited (SGX: 5JK). 

The acquisition seeds the new MA Accommodation Hotel Fund (the Fund), an open-ended wholesale fund offering investors the opportunity to invest in the accommodation hotel sector. The Fund will target high-quality accommodation hotel assets and aim to provide investors with both a robust distribution income stream (targeting 7-8% per annum) and targeting a compelling total return profile (targeting 13%+ p.a.).

We have agreed to appoint TFE Hotels to operate the property from completion under its Vibe Hotels brand, with the hotel to be known as Vibe Docklands. Built in 2018, the Vibe Docklands has 273 guest rooms, conference rooms, a fully licensed ground floor bar, bistro and café, a gym, outdoor swimming pool and car spaces.

Our Joint CEO Julian Biggins, said: “We are excited about the purchase of Vibe Docklands and expect it will be the first in a range of hotel properties we acquire in the near term.

We believe that the dislocation caused by the global pandemic, increased construction costs and the current macroeconomic conditions create a compelling opportunity to acquire accommodation hotel assets on very attractive terms. This is expected to generate strong risk-adjusted returns for fund investors.

Accommodation hotels fit perfectly within our specialisation as an alternative real estate asset manager, where we add value through identifying unique situations and actively managing assets for the benefit of investors.”

Visit our Shareholder Centre to read the full ASX announcement.