FINEXIA Direct Accommodation Income Fund

First Investment Round Closes

1 August 2021

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Registering your interest does not commit you to invest. By registering your interest we will be able to provide qualified investors a copy of the Information Memorandum.

About the Fund

The FINEXIA Direct Accommodation Income Funds aims to offer investors direct exposure to a portfolio of accommodation businesses located in key Queensland markets.

12% - 14% p.a. Target Return

The fund is targeting an average 12% - 14% p.a. return to investors  paid monthly.


Current forecasts show a Year 1 average 12.02% p.a. return to investors net of fees.

Experienced Management

The properties are managed by an industry expert with more that 20 years experience.


The Investment Manager is part of an ASX Listed Group holding an AFSL 485760

Liquidity

The fund aims to offer liquidity to investors via redemptions twice annually so you can enter and exit as your circumstances change.


Conditions apply and are outlined in the Information Memorandum. 

Great Locations

The portfolio mix includes the two most popular holiday destinations in Australia—the Gold Coast and the Sunshine Coast.


The portfolio consists of four properties with 650 rooms focussing on holiday and permanent accommodation markets.


The businesses comprise of holiday accommodation businesses at Broadbeach on the Gold Coast and in Noosa on the Sunshine Coast, and permanent accommodation businesses in Kippa-Ring and Morayfield in the Moreton Bay region.

Balanced Income

Income is strategically balanced by two long stay businesses, that were not affected by the pandemic, in outer Brisbane where vacancies have an average of under 1 per cent and rental demand is strong and on the rise.


The portfolio has a good spread of geographical diversity on a ‘Rooms by Location’ basis, and the letting type is almost equally split between long and short stay.

As well, 52 per cent of the fund’s income is generated by long stay, caretaking and other income with the balance of 48 per cent generated by short-stay accommodation.

How do I invest?

  1. Register your interest in the fund.
  2. Qualified investors will receive an Information Memorandum.
  3. We will soon send a link to an online application portal provided by Automic Group, a leading provider of registry services in Australia.
  4. Once you application is complete Automic Group will provide you with trust account details.
  5. Once alloted you will be issued units in the unit trust.
  6. All key dates, terms, and conditions are covered in the Information Memorandum and during the application process.


Registering your interest does not commit you to invest. By registering your interest we will be able to provide qualified investors a copy of the Information Memorandum.

Have any questions?

Forecast Distribution Year One

An average of 12.02% net p.a.  paid monthly from month 4 based on the Forecast Net Trust Distributions.

Fund Name

FINEXIA Direct Accommodation Income Fund

Investment Manager

FINEXIA Securities Ltd ACN 608 667 778 AFSL 485760

Trading Names

The Stay Company or StayCo

Investor Type

Wholesale and Sophisticated investors

Total Offer Amount

$13,681,322

Minimum Investment

$10,000

Maximum Investment

$6,500,000

Offer opening date

Monday 12 July 2021

First closing date

01 August 2021

Final closing date

25 August 2021

First Distribution

December 2021 – will distribute for the period from settlement date

Property Type

Accommodation and related services

Locations

  1. Bel Air on Broadbeach - 2633 Gold Coast Highway, Broadbeach Qld 4218
  2. Fleet Drive Apartment Complex - 30 & 54 Fleet Drive, Kippa-Ring Qld 4021  
  3. Ivory Palms Resort - 73 Hilton Terrace, Noosaville Qld 4566
  4. The Avenues Apartment Complex - 73-87 Caboolture River Road, Morayfield Qld 4506

Property Descriptions

  1. Bel Air on Broadbeach - The property is located on the Eastern side of the Gold Coast Highway in Broadbeach and the Business comprises 79 units x short term/holiday let and 32 units x long term let in the letting pool.  Apartments are 1, 2 and 3 bedrooms.  StayCo has a 22-year Management Agreement.   
  2. Fleet Drive Apartment Complex - is located in the residential suburb of Kippa-Ring in Moreton Bay Region, Queensland and comprises of 3-bedroom townhouses. It’s made up of 117 x long term let units in the letting pool.  StayCo has a 22-year Management Agreement.    
  3. Ivory Palms Resort – is located in Noosaville on the Sunshine Coast and the Business comprises of 90 x 1, 2 and 3 bed short term/holiday apartments.  StayCo has a 23-year Management Agreement.
  4. The Avenues Apartment Complex - It is located in the residential suburb of Morayfield in Moreton Bay Region, Queensland and provides 2 and 3 bedroom townhouses. It’s made up of 44 x long term let units in the letting pool.  StayCo has a 21-year Management Agreement.   

Registering your interest does not commit you to invest. By registering your interest we will be able to provide qualified investors a copy of the Information Memorandum.

Diversity Key to Finexia’s Fund

The lessons from Covid-19 have helped a new investment fund strike the right balance between earning a sustainable return and mitigating risk.

Targeting a 12 per cent to 14 per cent per annum return for investors, paid monthly, the Finexia Direct Accommodation Income Fund says it has balanced how we live, holiday, and invest.

Designed to take advantage of the booming domestic economy and the pent-up demand for accommodation in south-east Queensland as Australians flock to holiday hotspots such as the Gold and Sunshine coasts.

“All of our research and data shows that people just love coming to Queensland,” a spokesperson said.

“It’s not a hard sell and with more than 90 per cent of our guests coming from Australia before the pandemic, we are very comfortable with the portfolio mix.

“The Gold Coast and Sunshine Coast are currently some of the best performing regions.”

Finexia has launched the fund which it says is the first of its kind in the market and provides direct exposure to a portfolio of accommodation businesses in the key Queensland markets.

The portfolio consists of four properties with 650 rooms focussing on holiday and permanent accommodation markets.

They are holiday accommodation businesses at Broadbeach on the Gold Coast and in Noosa on the Sunshine Coast, and permanent accommodation businesses in Kippa-Ring and Morayfield in the Moreton Bay region.

The portfolio mix includes the two most popular holiday destinations in Australia—the Gold Coast and the Sunshine Coast.

Finexia says the income is strategically balanced by two long stay businesses, that were not affected by the pandemic, in outer Brisbane where vacancies have an average of under 1 per cent and rental demand is strong and on the rise.

Neil Sheather, CEO of Finexia Securities and the chair of the investment committee said that this fund and the portfolio of properties had been structured to have some core characteristics.

“These are that they provide an above market monthly income return; and offer those investors liquidity so they can come and go as their circumstances change,” he said.

“It has a diversity of locations not in CBDs and are in the high-demand regional tourist markets or where there is a severe rental shortage.

“These are areas that have historically only attracted domestic visitors, and it is a portfolio that doesn’t rely on rely solely on higher-yielding variable income sources but has a diversity of how it generates returns.

“Finally, it is managed by industry experts who have seen everything in the accommodation industry during decades of experience.”

Finexia says one of the key strengths of the fund is diversification of the portfolio.

It has been specifically structured with the Covid-19 experience to not be over-exposed in any particular market or income type.

The portfolio has a good spread of geographical diversity on a ‘Rooms by Location’ basis, and the letting type is almost equally split between long and short stay.

As well, 52 per cent of the fund’s income is generated long stay, caretaking and other income with the balance of 48 per cent generated by short-stay accommodation.

And as these are existing properties, there is no construction or delivery risk.

Finexia also believe that a good opportunity exists to grow the number of lots under management with 16 per cent of the lots in the properties currently managed by external parties.

For the short-stay properties, the average daily rates are $160 per night, catering for a market that is deep and affordable, while the permanent accommodation properties’ average weekly rents are at the most affordable end of the market and benefit from sub-1-per-cent average vacancy.

The fund, managed by ASX Listed group Finexia Financial Group (AFSL 485760), is offering six monthly liquidity to investors.

Finexia has invited investors “who can see opportunity and are looking for double digit returns” to register interest today. The fund will be closing soon.

Registering your interest does not commit you to invest. By registering your interest we will be able to provide qualified investors a copy of the Information Memorandum.

Have any questions?