Public Hospitality Group
Lifestyle, Accommodation and Hospitality Venues
Product Type
Property Loan
Interest Rate
12% p.a
Payment
Quarterly
Max LVR
75%
Summary
PUBLIC is on a mission to create Australia’s premier millennial lifestyle network of hospitality venues.
Equitable Investors Pty Ltd ATF Public Hospitality Unit Trust (“PUBLIC”) is a lifestyle, accommodation and hospitality business undertaking a capital raise to repay debt & fund growth. The team has identified a market gap in accommodation, sitting between the traditional short and long stay markets. They plan to exploit this gap by transforming underutilised assets in unique neighbourhoods into vibrant and bespoke lifestyle and accommodation experiences, at accessible prices.
The company is raising $43m ahead of an anticipated listing via a Secured Convertible Note
Upon listing, investors can elect to redeem their notes, or convert to stapled securities at a 15% discount to the IPO price
Interest will be paid to investors until 30 November 2022, regardless of conversion or redemption
Sophisticated Investors
To be considered for this investment product; applicants must supply evidence they qualify as a Sophisticated Investor
Investment Terms
Interest Rate
12% p.a
Payment
Quarterly
Max LVR
75%
Issuer | PUBLIC |
Amount | Up to A$43 million (driven by LVR) of which: Public Unit Trust: $42.95m OpCo: $0.05m |
Type | Secured Convertible Note |
Term | April 2023 with intent to IPO in Q2 of 2023 |
Coupon | 12% p.a, paid quarterly (Mar, Jun, Sept, Dec) until conversion (IPO) or redemption. Interest guarantee for period to 30 Nov 22, regardless of prior conversion or redemption |
Redemption | Prior to IPO (at election of the noteholder) or at term (if no IPO prior) |
Conversion | If not redeemed, all Notes will convert to stapled securities at the time of the IPO at a 15% discount to the IPO price |
Security | All asset security over Public Unit Trust and its assets including loans to vendors and Reregistered 2nd mortgages over eight Secured Properties with total LVR (including Senior) not to exceed 75% of Freehold valuation of $242m |
Board | 2 noteholder representatives (including Thorney) on Board of Manager of the Public Unit Trust |
Purpose | Loans to vendors to replace mezzanine debt and progress development of the properties |
Investment Highlights
Asset Security
Backed by a prime real estate portfolio of over $378m on a freehold (leased) basis and in excess of $477m on a going concern basis.
Diversified Revenue
15 venues, 14 owned, with diversified revenue streams including 230+ rooms, functions, events, and gaming – fully operational by mid 2022.
Rapid growth
Projected full year EBITDA of current properties over $30m, before venue management agreements and any additional property acquisitions.
Growing Market
Access to the growing co-living market segment, addressing the needs of the fast growing 18-35 Millennials demographic.
The Properties
Swanson St, Erskineville
Kurrajong Hotel*, 20 rooms, F&B - Opening late 22
Beattie St, Balmain
The Exchange Hotel*, 31 rooms, F&B - Opening late 22
Darling St, Balmain
Town Hall Hotel*, 18 rooms, F&B - Operating
Henderson Rd, Alexandria
Camelia Grove Hotel, 15 rooms, F&B & Gaming - Operating
High St, Kew
The Clifton Hotel, 12 rooms, F&B - Opening mid 22
Shelly Rd, Angel Beach
The Beach House*, 15 Villas, F&B - Opening early 22
Oxford St, Paddington
Rose Shamrock & Thistle Hotel, 23 rooms, F&B - Opening early 22
Cleveland St, Sydney
Norfolk Hotel, 6 rooms, F&B - Operating
Fitzroy St, St Kilda
The Saint Hotel*, 18 rooms, F&B - Opening mid 22
Wellington St, Collingwood
The Vine Hotel, 5 rooms, F&B - Refurbishment complete
York St, Sydney
Midnight**, Opening early 22 - Operated
Parramatta Rd, Annandale
The Empire Hotel*, 32 rooms, F&B & Gaming - Operatin
Oxford St, Paddington
The Arts Hotel, 67 rooms, F&B - Opening early 22
William St, Darlinghurst
The Strand Hotel, 26 rooms, F&B & Gaming - Opening early 22
Oxford St, Darlinghurst
The Exchange Hotel, 31 rooms, F&B & Gaming - Opening mid 22
*Do not form part of security pool **Operated Asset owned by third party
