Abacus checks in with hotel fund

Abacus Property Group has launched a new retail fund offering members of the public an opportunity to invest in resorts and hotels across Australia and New Zealand.

The Abacus Hospitality Fund began with an initial portfolio of $134 million and is aiming to provide investors with a pre-tax return of 10 per cent per annum, including a regular quarterly income of 8 per cent.

“The fund’s aim is to accumulate hotel properties [and] implement new management agreements or leases to highly experienced hotel managers in order to provide a reliable and attractive income to investors, with potential for future capital growth,” Abacus managing director Dr Frank Wolf said.

The manager has entered the hospitality arena to capitalise on growth opportunities that are more difficult to find in the industrial, commercial and retail property sectors.

The fund’s existing portfolio is made up of securities in the Novotel Twin Waters resort on Queensland’s Sunshine Coast, Chateau on the Park in Christchurch, and Rydges Trade Winds Cairns, all managed by either the Accor group or the Rydges chain.

“We believe the initial portfolio of these three hotel properties will provide an attractive yield for investors,” Wolf said.

Apart from the returns offered by the fund, investors will also receive the benefit of high tax deferral along with discounted accommodation at any of the hospitality centres the fund owns.

In an effort to align the manager’s interests with that of investors, the Abacus group is intending to maintain a minimum holding of 10 per cent of the securities issued by the fund.

Investors can buy into the fund with a minimum investment of $10,000.