Real estate (operational and core)
MA Accommodation Hotel Fund
Provides investors with exposure to Australia’s accommodation hotel sector via a portfolio of high-quality hotels located in major cities. The Fund targets a 14% IRR, including a stabilised 8.0% p.a. target distribution yield.¹
Target total return of 14.0% with potential for further upside1
Target distribution yield of 8.0% p.a.1
Seeking to selectively acquire assets located in major markets with a range of demand drivers and potential for operational upside
Fund overview
The Fund offers investors exposure to high-quality accommodation hotels located in major Australian cities, such as Melbourne and Sydney.
The Fund is targeting attractively priced hotels which benefit from a diverse range of corporate and leisure demand drivers, and which offer upside through operational efficiency improvements and potential cost savings.
We believe now is an opportune point in the cycle to enter the market. Many hotel owners currently face financial challenges including softening hotel investment yields, significant increases in finance costs and a generally more conservative credit environment. This presents opportunities for active managers to opportunistically acquire hotels at significant discounts to replacement value and on attractive stabilised yields.
Fund video
Watch this short video to hear from Portfolio Manager Anthony O’Hea as he explains the advantages of investing in accommodation hotel assets.
About the hotel portfolio
Vibe Docklands, Victoria
A 4.5-star, 273 room hotel located on Docklands Drive, directly adjacent to the Melbourne CBD
Olsen Hotel, Victoria²
A 4-star, 224 room hotel located in South Yarra, VIC
Cullen Hotel, Victoria²
A 4-star, 119 room hotel located in Prahran, VIC
Fund facts
Target total return
14% IRR1
Target distribution yield
8.0% p.a. (paid quarterly in arrears)1
Unit price
$1.00
Minimum initial investment
$100,000
Structure
Open-ended Australian wholesale unit trust (stapled structure)
Eligibility
Wholesale investors
Target Fund term
Initial term of 5 years with rolling 5-year terms3
APIR
MAA4668AU
Accommodation insights
Investing in Australia’s accommodation hotels
In this insight we explain that at the core of the investment thesis for Australian accommodation hotels lies the convergence of robust and strengthening market fundamentals, resilient income yield, scalable growth potential and favourable cyclically low asset pricing.
A unique buying window opens for Australian accommodation hotels
In this insight we discuss the structural and cyclical trends driving positive long-term market fundamentals
Insight video
Watch this short video to learn more about the investment case for accommodation hotels
For more information and to arrange a discussion, please contact us.
1. Pre-tax and pre performance fees. Net of management fees.
2. As at April 2024, the Olsen Hotel and the Cullen Hotel are not included in the portfolio as the Manager has only entered into non-binding terms to purchase the Olsen Hotel and Cullen Hotel. While transaction documents have not yet been entered into the Manager expects settlement to occur in June 2024.
3. Commencing on the Settlement Date which is expected to be on or about 9 April 2024.
IMPORTANT INFORMATION
MA Investment Management Pty Ltd (ACN 621 552 896) (Manager) is the investment manager of the MA Accommodation Hotel Fund (Fund). MA Asset Management Ltd (ACN 142 008 535) (AFSL: 427515) is the trustee of the Fund. The Manager has issued this document to its clients that are wholesale investors as defined under section 761G of the Corporations Act 2001 (Cth) for informational purposes only. While every effort has been made to ensure that the information in this document is accurate, its accuracy, reliability or completeness is not guaranteed. Statements contained in this document that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of the Manager. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. These views may not necessarily reflect the views of any other MA Financial Group entity. While reasonable care has been taken preparing this document, and all information provided in this document has been provided in good faith and has been obtained or derived from sources believed to be reliable, neither the Manager nor any of its affiliates, nor any of their respective officers, employees, advisors or agents makes or gives any representation, warranty or guarantee, whether expressed or implied, that the information contained in this document has been audited or independently verified, or is complete, accurate or reliable, or accepts any responsibility arising in any way (including by reason of negligence) for errors or omissions. Past performance is not an indicator of future financial performance. This document does not take into account an investor’s investment objectives, particular needs or financial situation and does not constitute financial advice. Investors should read the Information Memorandum applicable for the Fund before making any investment decisions and consider obtaining professional investment advice tailored to your specific circumstances before making any investment decision. Any investment in the Fund will be solely on the basis of the Information Memorandum (as updated and amended from time to time). The Manager nor any of its related body corporates, guarantee the performance or any rate of return of the Fund. To the extent permitted by law, no warranties, representations or guarantees are given and all loss or damage as a result of this information is expressly excluded.
This document is being issued on a confidential basis and no part of this material may be reproduced or disclosed, in whole or in part without the prior written consent of the Manager. Offers of interests in a Fund mentioned in this document are contained in the relevant Information Memorandum which will be available from client services.
