Pelathon Pub Fund expands
The Pelathon Pub Fund has been revamped and refinanced and is looking to build its portfolio across Australia.
The fund, which now has a gross asset value of about $24 million, is targeting hotels and single assets with the aim of creating a $100 million portfolio.
Its portfolio of assets include the Amaroo Tavern, Moree, the Mary G's, Lismore and the Victoria, Wagga Wagga.
Other properties in the pipeline in Queensland, NSW and the Northern Territory. It’s also looking at properties in cities such as Melbourne.
The business model is a mix of ownership and pub management.
Pelathon’s managing director Jaz Mooney says all assets will be taken on their merits as the group expands its operations.
"After re-organising the fund, refinancing the debt and working closely with Blackwall, we feel the time is right to look at our expansion plans," Mr Mooney told the Sydney Morning Herald.
"We aim to return 10 per cent year on year, with a revenue split of 25 per cent from a bottle shop, 30 per cent gaming and the rest from a solid food and beverage offering."
Pelathon works with the listed Blackwell Property Funds. The group had started as the Tankstream Fund which had a tough start.
Stuart Brown, the chief executive of the listed BlackWall Property Funds, told the Sydney Morning Herald that the Tankstream Fund had been in breach of its debt covenants when Blackwall’s businesses took charge.
"BlackWall and its pub management partner Pelathon Management Group instituted a number of measures including completing a merger of the group with a similar sized pub fund; selling the smaller assets and injecting the capital raised into much needed capital improvement; and underwriting a rights issue,’’ Mr Brown said.
"The fund, now known as the Pelathon Pub Group, has recently refinanced its debt. Pelathon has been offered an Australian Financial Services Licence and, with BlackWall's assistance, the fund's investors recently voted to appoint Pelathon Funds Management Ltd as responsible entity.”
By Leon Gettler, 28th April 2016
