We are pleased to offer investors the opportunity to participate in the SJH Hotel Fund. The Fund owns and operates a portfolio of freehold and long term leasehold hotels in the Newcastle Region, NSW, Australia under a turn key management team. The portfolio is supported by an institutional operator focused on acquiring, redeveloping and operating pubs in order to generate strong cash yields and capital growth for investors.
Diversified portfolio: Freehold and long term leasehold hotels in the Newcastle/Hunter region, NSW, Australia
Fund size: $39.5 million
Target distributions: 7.50%p.a.
Distributions paid: Quarterly
- Strong and stable historical earnings and cash flow, underpinned by multiple revenue streams including gaming, food and bar, retail and accommodation.
- Stable cash yield: target cash distributions to investors of 7.50% per annum, paid quarterly. Like all investments, the performance of the Fund is not guaranteed.
- Hunt Hospitality is an institutional grade operator with an intimate knowledge of each of the venues and has been successfully operating them for more than five years.
- Opportunity for operational improvements: Selective capital investment projects will provide earnings growth opportunities. Minimal upfront
capex will be required given the age and quality of the assets.
- Debt financing on attractive terms: Senior debt facility (WBC) loan-to-valuation ratio of 55% LVR at effective rate 3.76% p.a.