Deltine lines up ninth motel after seventh buy
Deltine’s High Yield Motel Fund has acquired its seventh asset as it continues an aggressive regional expansion.
The four-star Drovers Motor Inn is the largest motel in Dalby, in Queensland’s Western Downs, and the only with a conference facility.
It also offers 34 rooms across eight accommodation configurations, a restaurant, bar, swimming pool and parking.
The purchase will lift the fund’s portfolio to 229 rooms across seven motels.
It is also understood Deltine is due to settle its ninth asset shortly: The Platinum International at Toowoomba.
That 52-room hotel will be the fund’s largest holding to date.
Fast growing fund
The Deltine High Yield Motel Fund is promoting 20 per cent total returns over five years.
Unitholders can expect a 10.5pc distribution paid monthly, according to Deltine (continues below).
The fund is open-ended for wholesale investors.
Deltine founder David Toomey said the Dalby acquisition was underpinned by confidence in the Western Downs economy, where agriculture, renewable energy projects and freight activity are complemented by potential oil and gas exploration across the Taroom Trough.
The deal continues a rapid buying program since the fund launched, targeting regional accommodation assets with strong trading performance and value-add potential.
Its portfolio also includes the Country Motel Ipswich, west of Brisbane.
In New South Wales it owns the Roseville Apartments in West Tamworth and Amaroo Motel in Tumut.
It also recently agreed to purchase The Observatory Apartments in Coffs Harbour – 22 units with an average 93 per cent occupancy, walking distance to Jetty Beach.
The New Crossing Place Motel in Victoria’s Seymour also forms part of the portfolio.
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