Ramada SkyHotel

Transaction Summary

Company Overview

The Fraser Coast and Hervey Bay have considerable tourism and infrastructure development, and are considered one of the leading growth areas in Australia today.

A syndicate of investors, through its sub-trust SkyHotel Investment Fund, will purchase the land on which Ramada SkyHotel is to be built, and subsequently aim to provide investors with a reliable and regular income through the income of rent as well as tax deferral benefits and prospective capital growth.

The total development cost to construct SkyHotel is expected to be A$22.5M. This cost will be met by a combination of the subscription funds (A$8.5M to A$12M) along with a bank loan of approximately A$12M. It is a precondition that the Project is fully funded.

Distributions
Construction Phase: 7% per annum distributions will be paid over the expected construction period of 12 months, paid quarterly from Drawdown. There is an allowance for the 7% for a maximum 16 months in the event of construction delays.

Operational Phase: Forecast over 8% per annum from Fixed Rent plus Additional Rent Distributions will be paid quarterly from the commencement of the Lease between SkyHotel Resort Management (Lessee) and SkyHotel Investment Fund (Lessor).

SkyHotel Operator
SkyHotel will be operated by SkyHotel Resort Management Pty Ltd, which is wholly owned by Angel Hotel Management Pty Ltd, the current operator of Ramada Stage 1.

Angel Hotel Management has a proven track record and established key relationships with many key parties for hotel operations. This success is evident by over an 80% occupancy even before covid. Current occupancy often approaches 100%.

Angel Hotel Management operates Ramada independently under a Ramada franchise and will license SkyHotel Resort Management to operate SkyHotel under the Ramada branding.

Key Features & Benefits

Collective investment can mitigate risk, take advantage of ‘buying power’, with investors having no personal liability

Bricks & mortar security obtained at cost through construction & development

Proven professional management global hotel branding & established relationships

Benefit from substantial infrastructure already in place

Proven market demand with a 10 year operational history

Land exchanged for top floor facility to reduce cash outgo & optimise occupancy

Managed Investments Act & ASIC compliant with independent Responsible Entity & Custodian – Property Collect Growth Trust is a registered scheme

Why Invest

The benefit of Ramada Hervey Bay’s proven track record, combined with location and cost to build benefits, is why investing just makes sense.

Forecast average minimum 8% per annum cash return paid quarterly with tax advantages plus target capital growth

Forecast total compound return (IRR) of 14.7% p.a. at conservative 2% p.a. capital growth escalation on valuation

Fixed investment return of 7% per annum paid quarterly during construction

6 year trust term until final sale of asset and distribution of any capital growth

Units transferable. Clear exit structure including a Primary Markets listing

One of the fastest growing areas in Australia

Ramada SkyHotel is a franchisee of the largest hotel group in the world

Investing at cost to optimise future capital growth

Lease security to guarantee investor returns from the trust

Benefit from the operator offering the top floor asset as security to optimise borrowing and investor repayment

Note: Returns are based on the median subscription of A$10M