News and Announcements
Sirona Capital Launches its Latest Real Estate Investment Fund
- Published May 27, 2015 11:05AM UTC
- Publisher Wholesale Investor
- Categories Company Updates
Wednesday, 18 May 2015
Sirona Capital (Sirona) has launched a second round capital raise for one of its real estate investment funds, the Pakenham Street Investment Fund (Fund).
Sirona is seeking to raise $2.365 million to facilitate the development of a 120 key, 4 ½ star apartment hotel in Fremantle (Development) underpinned by a 15+ year lease to Quest, Australia’s leading apartment hotel operator. These funds are additional to the first round capital raise of $9.675 million which enabled the acquisition of the development site and pre-construction works to be undertaken.
The key investment highlights of the Fund include:
- Attractive investment returns – forecast income distribution of 13.0% p.a. (average and post fees, pre-tax) over an 8 year term, with distributions paid quarterly following completion of the Development
- Prime CBD location with an established tourism market – strategically located in the historic “West End” heritage precinct of Fremantle, a strategic metropolitan centre with a long established commerce and tourism economy
- Undersupply of hotel rooms – the local hotel market is experiencing an acute supply shortage and leads the nation of key industry metrics (occupancy and RevPAR)
- Strong leasing covenant – 15+5+5+5 year lease with 4% fixed annual escalation, underwritten by a Quest corporate guarantee
- Development risks mitigated – all planning approvals have been obtained, a well experienced builder has been appointed under a fixed price contract and pre-construction works completed
- Construction finance in place – credit approved senior construction and term debt facilities in place with a leading Australian commercial bank
- Barriers to entry – significant land, planning and financing barriers for new market entrants limiting supply side competition
The Fund has an expected term of 8.0 years.
Please find attached a copy of Sirona’s Pakenham Street Investment Fund flyer for your consideration. A full investment information memorandum is available on request.
To download the additional document, please click on the link below.
Company Updates
Built on discipline, not complexity: inside an ASX equities income strategy
Haydn Froggatt and Zac Brabin have decades of derivatives experience between them and access to almost any strategy in the market. They use two of the simplest structures available, and wrote 202 positions with them last year. Published by Fairway Capital Management. Based on an interview with co-founders Haydn Froggatt and Zac Brabin. Two traders, […]
BlackRock has named the next Economy. What this latest paper means for Private Market Investors.
BlackRock has put a name on something the smart money has been circling for two years. Its digital assets research team calls it the machine-native economy. The thesis fits in one line. AI is machine-native intelligence. Digital assets are machine-native money. Both are built on the same architecture, and they are converging into a single […]
Where’s the beef? Blackstone just answered the AI question.
In 1984, a fast food ad asked a question that became a catchphrase. Where’s the beef? Jon Gray, President of Blackstone, used that line this month in front of global LPs. It is the question every capital allocator is asking about AI. Trillions of dollars are going into chips, data centres and power. That is […]
Backed By Leading Investment Groups and Family Offices
