Acure Hospitality Trust No.1

Acure Asset Management Ltd is a property investment and management company with its head office in Perth, Western Australia.

• Commenced in 2012 and has established 17 syndicates with an aggregate value of $550 million
• Target income-focus commercial property with a strong value proposition
• Sector-agnostic focusing on off-market opportunities only
• Attracted 800+ wholesale investors nationally, both directly (HNW/ family offices) and indirectly through accounting & wealth management firms
• To date, our realisations have delivered an average of 18% p.a. IRR to investors, which include an income yield of 8-13% p.a.

Acure is focused on identifying and originating quality property assets throughout Australia as well as creating and managing property Trusts and syndicates to provide high quality investment opportunities for investors. The Acure team has operated across a broad spectrum of property sectors including commercial, industrial, retail, residential, tourist and mining accommodation throughout Australia.

The management team has a successful track record in investment management, developing strong property industry relationships and holds an in-depth knowledge of the property market.

Acure’s investment philosophy lies in its motivation to constantly identify and originate opportunities that take advantage of market conditions in order to achieve growth in assets and earnings for its security holders, key stakeholders and partners.

Acure will under take the Asset Management role for the Property.

Acure Funds Management Ltd holds Australian financial services licence number 411056. The directors of AFM have considerable experience in capital raising, Trusts management, compliance and operating managed investment schemes on behalf of investors.

• Over 26 years of experience in funds management and capital markets.
• Founder and Managing Director of Acure Asset Management Limited.
• Founder and Managing Director of ASX listed Aspen Group Limited (APZ) from 2001 to 2010 (Aspen was a development and funds management group).
• Responsible for the growth of APZ from inception to a diversified property funds company with $1.4 billion AUM (as at 2010).
• Responsible for the growth of Market Capitalisation of APZ from $700,000 in 2002 to $350 million in 2010.
• Has experience across office, industrial, and retail sectors including accommodation villages, resorts and land development.
• Investment banking background with Prudential Bache Securities and BNP Paribas.
• Mr Del Borrello holds a Diploma of Financial Advising with FINSIA Australia.

• Managing Director of SVN Property Group Australia – a full-service property company operating in Perth’s commercial, residential and strata markets.
• Managing Director of Vanilla Property Investments – A property investment and funds management group operating in Perth.
• Professional property investor with over 20 years of experience in building and construction, specializing in the development of residential and commercial property sites for sale and investment. Mr Redolatti has extensive experience in managing and financing property development and property and asset management.
• Bachelor of Civil Engineering (Hons), Diploma in Property (Real Estate), and Diploma in Financial Planning is a registered builder and Licensed Real Estate Agent.

• Over 35 years of experience in the Financial Services and Wealth Management sectors.
• 26 years as a Partner and Director of RSM Australia Chartered Accountants and Chairman/ Director of RSM.
• Served as Chairman of the Investment Committee, Risk/Compliance Committee and Audit Committee of RSM Financial Services Australia Pty Ltd.
• Acted as Responsible Officer for 3 separate Australian Financial Services Licensees (AFSL).
• Specialises in the analysis of Investment Products and Structures suitable for a range of retail. and wholesale clients with an emphasis on those Products and Services that have the ability to maximise investment cycles and provide longevity to clients’ capital.
• Possesses vast experience in the ongoing management and strategic development of businesses operating in the Financial Services and Wealth Management Sectors.
• Bachelor of Commerce Degree and Graduate Diploma of Applied Finance and Investment.

To secure an allocation or discuss any questions you have, please do not hesitate to contact a member of the Acure Distribution Team:

Alternatively, if you have joined Investment Markets (which is free) and verified your email address, you can send an email directly to us either by: -

• Selecting “Enquire” when viewing the card relating to the listing, OR

• By completing the enquiry form on the left-hand side when viewing the detail of a listing

We will respond using your preferred communication method (i.e., email or phone).

The Trustee will seek to maintain gearing for the Trust in the range of 35%-45% of the value of the Properties.

The Trustee will utilise borrowings for the acquisition of Properties and for any other purpose such as to improve and maintain the properties, including capital works or tenant incentives.

The debt funding will be non-recourse to the Unitholders and only secured over the Properties and assets of the Trust generally.

The Trust will seek to to acquire Additional Properties over a 2 year period ending 31 March 2025 or until the Trust’s portfolio achieves an aggregate value of $200 million (if appropriate returns and purchase hurdles are met).

The Trustee aims to create a portfolio that will be diversified by both geography and operating model.

As the Trust grows and acquires new hotels, additional equity may be raised at the prevailing Issue Price. 

Existing Investors will not be obligated to contribute additional investment to fund the acquisition of Additional Properties, but will be given priority to participate in such offers ahead of any new Investors.

Target Properties

The Trustee will continue to identify and acquire properties in the hotel and hospitality sector that will demonstrate the following:

• Predominantly satisfied by local domestic tourism demand, but also will benefit from interstate and international demand as air travel volumes normalise.
• Enhance diversification both geographically and operationally.
• Generate a stable cash income yield of at least 7.5% p.a. with income growth that has the potential to increase in line with inflation.

The Trustee will continue to identify and acquire properties in the hotel and hospitality sector that will demonstrate the following:

• Predominantly satisfied by local domestic tourism demand, but also will benefit from interstate and international demand as air travel volumes normalise.
• Enhance diversification both geographically and operationally - Hotels are an operating business, and a landlord can either:-

1. 1. 1. lease the property to an operator in return for a rental income;
      2. employ a professional operator to manage the hotel in return for a share of the income; or
      3. employ the staff and operate the business.  These options differ in risk and return to the property owner and, as an investor, diversification is important to ensure a steady regular income.

• Generate a stable cash income yield of at least 7.5% p.a. with income growth that has the potential to increase in line with inflation.

Once units in the Trust have been issued pursuant to an application, there are no withdrawal rights from the Trust.

The Investment term is expected to be a total of 7 years from the settlement of the Initial Portfolio (April 2023).

The Trust will seek to acquire additional properties over the initial 2 year period, and then hold the portfolio for a further 5 years before convening a meeting of unitholders to consider a liquidity event for their investment subject to a majority vote by Unitholders.

The Trustee will review the Investment Term on a regular basis to maximise investor returns.

The Trustee will provide regular updates to investors in relation to the performance of their investment in the Trust, in the form of quarterly newsletters.

The Trustee will also provide investors with an annual taxation statement to assist with the preparation of your tax return.