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.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
