Six Australian hotels—including the $39-million Peppers Cradle Mountain Lodge in Tasmania and the Mantra at Wollongong—may get new ownership if Sydney-based Elanor Investors Group can raise $50 million for a new fund. The Group, backed by former Macquarie real estate boss Bill Moss, wants to grow the new fund from $100 million worth of properties to $200 million by end of fiscal-year 2017.
According to an information memorandum obtained by The Australian Financial Review, the Elanor Hospitality and Accommodation Fund is forecasting a distribution yield of about 13.7 percent per year.
The fund will use a $52-million facility from the Commonwealth Bank of Australia to finance the purchase of the six hotels.
The other four hotels will include Best Western Port Macquarie, Best Western Tall Trees in Canberra, Mantra Pavilion in Wagga Wagga and the Parklands Resort in Mudgee, NSW.