Vertua Opportunities Fund
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|Legal Structure:||Unlisted, open-ended unit trust|
|Distribution:||Annually at 30 June|
|Minimum initial investment (per unit class):||$100,000 AUD under regular Investment Plan|
Our investment strategy
We’re currently focusing on acquiring established accommodation businesses on the East Coast of Australia. Our portfolio is concentrated in Tasmania and the South Coast of NSW.
Our short-term strategy is to acquire some additional established operations on the Northern NSW coast, which have less seasonal impacts on their performance. Ideally we’ll cluster our acquisitions within 1-2 hours drive of each other to make oversight and management easier and more effective.
Long-term we would like to see diversity in the mix of operations owned and operated. This may include traditional 'pub' operations, if and when they become attractive financial opportunities. We’re currently of the view that economic drivers of certain assets within the broader tourism sector are stretched and it’s difficult to make a long-term economic case for them.
ACQUIREproperties and businesses with high value-add potential at below replacement value.
UPGRADEand reposition the asset, focusing on cost effective improvement with high marginal benefits.
REFINEoverall operating procedures and implement new technologies to increase operating leverage.
SELLmotels on improved performance through yield compression as part of a portfolio or as individual assets to maximise returns.
How we add value
Our success is based on our hands on approach to managing assets. We seek to identify and acquire assets where we can add value by applying our process. This ‘value add’ is critical at all stages of the investment cycle – acquisition, ownership, development and disposal.
We are experts in identifying assets that will benefit from active management and development. This approach helps us maximise returns and utilise our industry knowledge to significantly improve each asset acquired. Central to this idea is our belief that a well acquired and well-run asset will continue to deliver returns over the long period for investors.
- Market Research
- Macro trend identification
- Review current portfolio
- Impact on market changes
- Portfolio rebalancing
- Manage capital
- Assets selection criteria
- Due Diligence Process
- Finance Structures
- Identify value-add proposition
- Manage property and management changes
- Reoccurring maintenance to value add
- Establishment of KPI’s for active management
- Strategies to reposition assets
- Efficiencies across the organisation
- Single asset or portfolio approaches
- Partial disposals via long-term lease sales on select assets
Where to from here: future acquisitions
We actively seek to acquire additional assets to complement our existing operations. A core part of our strategy is to expand assets under our ownership and management to better leverage operational efficiencies. Part of this is establishing some criteria we utilise to make quick assessments of potential properties and assets to identify if they fit the Fund’s strategy.
Minimum Purchase Price*
Maximum Purchase Price
Minimum Avg. Annual Occupancy Rate
Targeted Leveraged Return on Equity
Minimum number of rooms*
Maximum Avg. Annual Occupancy Rate
Freehold Property Attached to Business
Existing Management Structure
Able to be Geared with Major Banks?
Yes, minimum of 50%*
With a focus on sustainable growth, we look to acquire both operational and investment assets over the life of the Fund. Buying operational assets, where we can add value to the underlying businesses, allows us to make significant increases in the profitability of the operation and, in turn, the underlying asset value.
81-83 Nelson Parade,
Tuross Head NSW 2537
Beach Drive Motel
24 Beach Road,
Batemans Bay, NSW 2536
Stewarts Bay Lodge
6955 Arthur Hwy,
Port Arthur TAS 7182
Barclay Motor Inn
112-114 North Fenton Street,
Devonport TAS 7310
The Gateway Motel
99 Ballina Road,
Lismore NSW 2480
Reports & Forms
- Information Memorandum - Dated 8th May 2019 Capital Raise to acquire Gateway Motel
- Information Memorandum - Dated 29 March 2018 Capital Raise to acquire Tasmanian Property
- Information Memorandum - Dated 23 March 2017 Capital Raise to acquire Batemans Bay Property
- Information Memorandum - Dated 14 February 2017 Capital Raise to acquire Tuross Head Property