The Fund has two return targets: 

• A 10.5% income yield per annum, paid monthly — funded by rental income from the property and net operating earnings from the motel businesses. 

• A total return of around 20% per annum over a 5-year hold — combining the above-mentioned income yield with capital growth at exit. 

Four sources work together as the portfolio grows: 

1. Acquisition yield (~10% p.a.) Regional motels are typically bought at purchase yields of between 10 – 15%, reflecting reduced buyer competition in this segment rather than higher risk. Sourcing discipline is central to the strategy. 

2. Operational improvement (~2.5% p.a.) Centralised revenue management, procurement and operating systems create scale and efficiencies and lift margins.  

3. Inflation pass-through (~2.5% p.a.) Room rates can be adjusted daily if required providing a hedge against inflation that fixed-lease commercial property cannot match. 

4. Portfolio premium on exit (~5% p.a.) A scaled, professionally managed, diverse portfolio is generally valued higher than the sum of its individual assets.  

The investment strategy avoids development, turnarounds and high leverage. Returns are a target, not a guarantee, and depend on execution and market conditions. Full assumptions are provided in the investor pack. 

Investing in the Fund carries the risks common to unlisted property funds, alongside specific risks tied to motel operations. The main ones to be aware of: 

• Market and demand risk: Motel revenue can soften in downturns or shifts in regional travel. To mitigate this risk, the Fund focuses on motels with a high share of corporate, government and essential-service guests, and diversifies across regional economies with multiple economic demand drivers. 

• Operational risk: Poor on-site management can erode margins quickly. To mitigate this risk, the Fund only acquires motels large enough to support professional on-site management and provides extensive support to on-site managers with a centralised platform for revenue, management guidance, procurement and reporting. 

• Asset and portfolio risk: Individual properties can face unexpected maintenance, competition or weather events. In addition, the broader portfolio is exposed to interest rate movements and valuation changes. Detailed due diligence, diversification, conservative gearing and active management reduce (but do not eliminate) these exposures. 

• Liquidity: Units in the Fund are illiquid during the term unless owners are able to find a buyer for their units. Investors should be comfortable holding for the full investment period. 

A full description of general, regulatory and Fund-specific risks is provided in the Information Memorandum. 

Both routes give you exposure to motel returns. The difference is what you take on when directly owning the asset. 

Direct ownership concentrates your capital in one property, in one town, with the day-to-day responsibility of managing a lease and/or running a business.

Investing through the Fund means: 

• Lower risk due to diversification across a target portfolio of 50+ motels, multiple regions and varied economic demand drivers. 

• Higher forecast returns due to broader exit options and increased value as part of an institutional-grade portfolio. 

• Passive exposure with no operational involvement and monthly distributions. 

• Access to off-market deals and operational scale that individual buyers can't readily achieve. 

The trade-off is: Fund investors give up direct control during the term, in exchange for diversification, professional management and scale.

Yes. The Fund's strategy is to progressively bring acquired motels under one unified brand, building a recognisable regional motel network with consistent quality standards. 

Examples of what we expect this to look like in practice: 

• Consistent guest experience: modern, well-presented rooms with technology-enabled booking and check-in across the network. 

• Local character at each property: individual motels reflect their region's food, attractions and identity, rather than presenting as generic chain product. 

• Loyalty and direct distribution: a network-wide loyalty program and shared booking platform to drive repeat stays and reduce agency commissions. 

• Centralised operations: shared systems for revenue management, marketing, procurement, training and finance. 

Rebranding will be rolled out progressively across the portfolio rather than applied to all motels at once.