MA Financial buys Melbourne hotel for $96m, launches new fund

SYDNEY, AUSTRALIA: MA Financial Group, a global alternative asset manager, has purchased a large-scale hotel in Melbourne for $96 million, marking the launch of its new fund that targets the accommodation hotel sector.

The hotel, formerly owned by Singaporean real estate group Hiap Hoe Limited, will be operated by TFE Hotels under its Vibe Hotels brand and renamed as Vibe Docklands. The hotel has 273 guest rooms, conference rooms, a bar, a bistro, a café, a gym, a pool and car spaces.

The hotel acquisition seeds the MA Accommodation Hotel Fund, an open-ended wholesale fund that offers investors the opportunity to invest in high-quality hotel assets. The fund aims to provide investors with a robust income stream of 7-8% per annum and a compelling total return of 13%+ per annum.

Julian Biggins, joint CEO of MA Financial, said the firm plans to grow its exposure to the hotel sector to more than $1 billion and expects to acquire more hotel properties in the near future.

He said the firm believes that the current market conditions create a favourable opportunity to buy hotel assets at attractive prices and generate strong returns for fund investors.

He added that accommodation hotels fit well with the firm’s specialisation in alternative real estate assets, where it adds value through identifying unique situations and actively managing assets.

MA Financial is a leading alternative asset manager with significant investments and operational capability in hospitality, marinas and other alternative real estate assets.

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