Total Fund Raise A$10M
Ramada SkyHotel. Stage 2 of the current Ramada Hervey Bay, is targeted to commence construction early in 2022.
Hotel operator already secured
Total Fund Raise $10M – Own Bricks + Mortar – Forecast 8%+ pa cash return plus tax deferrals
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.
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 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
- Total Fund Raise A$10M Expected
- Fixed 7% p.a. Cash Return Construction Phase
- Forecasted 8%+ p.a. Cash Return Operational Phase
- Construction 2022 – Open Mid 2023
- Tax Deferrals Forecast For 3 Years