A new hospitality fund offering the opportunity for Wholesale Investors to invest in both hospitality businesses and the underlying real estate it occupies has been launched.

The two largest hospitality businesses in Australia are tenants only, with ownership of the real estate assets in the hands of corporate passive rent collecting landlords. Under a lease, the interests of the tenant and landlord are not always aligned, creating the potential for conflict, and consequently the growth potential of the business and/or the development potential of the real estate maybe compromised or not realised.

The Venu Hospitality Fund will comprise an initial portfolio of 10 leasehold businesses and 2 freehold going concern pubs with a mandate to grow investor returns via economies of scale, buying power, technology, property development and acquisitions.

‘We believe that by owning the real estate and the hospitality business that occupies it we are best placed to add value to both’ said Steve de Nys, Director of Venu Hospitality Fund Investment Manager Cooee Investment Management.

He cites the Pine Beach Hotel at Emu Park, just south of Yeppoon in Central Queensland as an example of the Fund’s investment strategy. Offering 270 degree views over the Coral Sea out to Great Keppel Island, the Pine Beach Hotel offers immediate operational upside via a minor refurbishment, upgraded electronic gaming machines, enhancements to the retail liquor offering and Venu’s ‘back of house’ administrative support functions and buying power. 

The property, comprising 5,865m2 of land over 7 titles and with Development Approval for a new hotel, 21 multiple dwelling units and shops offers the opportunity to add value to the real estate over the medium term.

Figure 1 - The Pine Beach Hotel and development land, Emu Park. Outline indicative only.

For further information or request an information memorandum visit https://stara.net.au/portfolio/venu-hospitality-fund/ 

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