25 March 15
Mandala Asset Solutions Pty Limited as manager of the Trinity Accommodation Regional Hospitality Fund (TARHF) is pleased to announce that hard and soft commitments to the Fund had crossed $6.5 million. “We have now crossed the two thirds mark to our first close target”.
John Zeckendorf, a Principal of Mandala commented that “the fundraising is proceeding well with a large number of investors liking the low risks and high return of this asset class”. He also noted that “with a number of potential investors still undertaking their review process, it seems likely that TARHF will be in a position to make a First Close within weeks”.
Supply of suitable properties for the fund remains available and Mandala have commenced due diligence on some potential targets pending the completion of the First Close. “We should be in a great position to deploy funds quickly after we make our First Close” said Mr Zeckendorf.
TARHF will use investor funds to build a portfolio of regional Australian motel assets. It will not enter into the “pubs” market nor take on any “boom” towns. “This Fund is all about stability of market and value adding through professional management and strategic capital expenditure” said Mr Zeckendorf, noting that many regional assets were “built in the 1980’s, run by “mum and dad” and last renovated in the early 2000’s”
TARHF is targeting quarterly cash returns of more than 10% per annum and capital growth of more than 5% per annum on an IRR basis.