03 September 15
"Mandala Asset Solutions Pty Limited as manager of the Trinity Accommodation Regional Hospitality Fund (TARHF) is delighted to announce the acquisition of two properties.
John Zeckendorf, a Principal of Mandala reports that “TARHF has exchanged contracts to purchase the Quality Inn Carriage House Motor Inn in Wagga Wagga and also the Q Express Motel in Townsville.” A summary of these properties is provided here.
TARHF is excited to purchase significant properties operating in strong regional towns in Australia. Wagga and Townsville are regional “capitals” providing larger scale local services underpinned by government, business and leisure. A brief profile of each town is set out below. They are excellent motel towns over the long term. Mr Zeckendorf noted that “These initial acquisitions are designed to provide stability to the long term income base of the Fund and are very solid performers”.
TARHF is continuing to purchase properties. Mr Zeckendorf reported “TARHF is negotiating on a number of similar properties that will produce net returns in the mid to high teens as well as allowing for capital upside through our value added strategies. We expect to announce further acquisitions shortly that will take our returns to investors well above the targeted returns”.
Mandala have launched a new Regional Accommodation fund, Trinity Accommodation Regional Hospitality Fund (TARHF) to take advantage of many opportunities in the Australian regional market. “The potential for “value adding” in this market is vast” said Mr Zeckendorf.
TARHF is targeting quarterly cash returns of more than 10% per annum paid quarterly and capital growth of more than 5% per annum on an IRR basis.
A First “family and friends” Close for TARHF was made in July 2015 and a Second Close is expected later this year.
Wagga Wagga is New South Wales’ largest inland city and is an important agricultural, military, and transport hub of Australia. It is midway between the two largest cities in Australia, Sydney and Melbourne, and is the major regional centre for the Riverina and South West Slopes regions.
Townsville is Australia's largest urban centre north of the Sunshine Coast, with a 2015 population estimate of 200,000. Considered the unofficial capital of North Queensland, Townsville hosts a significant number of governmental, community and major business administrative offices for the northern half of the state."
John Zeckendorf, Principal, Mandala Asset Solutions Pty Limited, 3rd September 2015