Wholesale investors have been quick to take up units in the first regional and second Stronghold Hospitality trust, with the offer oversubscribed less than two weeks after launch.
Executive Director and Head of Property Steve de Nys said the Stronghold Hospitality Property Trust No 14, was launched in March to raise $7.5million in equity for the purchase of the Brothers Sports Club Bundaberg and associated land holdings.
The 8.1ha sporting complex on the main road into Bundaberg (Takalvan Street) currently includes a two-level sports club building, bowls club and bowling greens, netball courts, rugby and AFL playing fields and associated clubhouses. Prior to settlement, Stronghold had also negotiated an Agreement for Lease (AFL) with the Estilo Group for the construction of a hotel adjacent to the Club on the corner of Takalvan Street and Airport Drive.
The lease and subsequent construction of a hotel is subject to development approval from council and is impact assessable.
The trust is forecast to deliver a cash return of 9.5% in year 1, increasing to 10.25% per annum by year 3 and, if approved, the construction of the hotel was expected to improve returns even further.
Applications for the Hospitality Property Trust No. 14 closed on the 29th March.
Executive Director and Head of Finance Mr Bruce Anderson said there was such strong interest in this investment opportunity, that the trust was oversubscribed within two weeks.
Settlement is scheduled for the 2nd May.
“This advice is general advice, not personal advice so you can’t assume it will be suitable for you. It does not take into account your objectives, financial situation or needs so you will need to consider if the advice is appropriate for you.”
To find out more about Stronghold visit https://www.strongholdinvest.com.au/ or contact Steve de Nys 0413 515 808 or firstname.lastname@example.org. Please note: Stronghold investments are open to Wholesale Investors only.