Built on pillars
The Fund was constructed around two core investment pillars, being Income and Capital Growth, which are core to the Vertua strategy for the Fund.
Income
To provide regular income to investors
Capital Growth
To provide regular income to investors
4 stage strategy
Our 4-stage strategy sets the criteria from which we select assets to acquire in the Fund. Our strategy is to add value to investors in the Fund through this strategy. By following this simple plan, the Fund has delivered regular, ongoing returns to existing and will continue for any new investors into the future.
Acquire
Acquire property and associated businesses with high value-add potential, ideally below replacement value.
Upgrade
Undertake a repositioning strategy to create additional value, increasing the income and capital value.
Refine
Integrate and improve operating procedures, through deployment of technology and processes to increase revenue, reduce costs and improve margins.
Sell
Position either single assets or the enlarged portfolio for an ultimate exit, designed to maximise the total return to investors.
Why are we focused
on Tourism + Hospitality?
Australia represents one of the tenth largest tourism markets in the world. Its steady economy provides a stable platform for the tourism + hospitality industry grows and development, attracting more domestic and international tourists travelling in Australia each year. A lot of Australian iconic places and bucket-list spots are situated across regional Australia. Based on a research provided by the Australian government regional tourism in Australia is moving on an upward trajectory with a number of tourists increasing on average by 5.6 per cent per annum over the past five years, and visitor nights increasing by 4.6 per cent over the same period.
Importantly, tourism industry in Australia plays a key role in regional development and the Government puts a lot of effort into development of this industry. Tourism 2020, the 10-year national tourism development strategy has helped to achieve over $115 billion spent in tourism by 2020 with 43 cents of every tourism dollar being spent in regional Australia.
In addition, Austrade, in conjunction with Tourism Australia, is developing Australia’s next national long-term tourism strategy. Development is occurring in cooperation with state and territory governments and the tourism industry. It is proposed that the Tourism 2030 strategy will commence on 1 January 2021. (Austrade, 2020)
Adding value by
applying our process
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.
Our historic returns have been generated by 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.
Research
- Market Research
- Macro trend identification
- Review current portfolio
Portfolio
- Impact on market changes
- Portfolio rebalancing
- Manage capital
Acquisition
- Assets selection criteria
- Due Diligence Process
- Finance Structures
Development
- Identify value-add proposition
- Manage property and management changes
- Reoccurring maintenance to value add
Management
- Impact on market changes
- Portfolio rebalancing
- Manage capital
Disposal
- Single asset or portfolio approaches
- Partial disposals via long-term lease sales on select asset
Research
- Market Research
- Macro trend identification
- Review current portfolio
Portfolio
- Impact on market changes
- Portfolio rebalancing
- Manage capital
Acquisition
- Assets selection criteria
- Due Diligence Process
- Finance Structures
Development
- Identify value-add proposition
- Manage property and management changes
- Reoccurring maintenance to value add
Management
- Impact on market changes
- Portfolio rebalancing
- Manage capital
Disposal
- Single asset or portfolio approaches
- Partial disposals via long-term lease sales on select asset
Future Acquisitions
Acquisition Strategy
Some of our core criteria when seeking to look at any asset includes:
- Existing or greenfield asset, with predictable cashflows
- Clearly available financial data on historical performance
- Strong underlying land value prospects
- Ability to value add through management or development opportunities
- Transparent counterparties looking to undertake a fair transaction