NEW WHOLESALE INVESTMENT OPPORTUNITY

ALBURY MANTRA HOTEL TRUST

PARTNER WITH SUMNER CAPITAL | 10TH MAY 2021

We are pleased to announce the launch of a new wholesale investment opportunity to invest in the Albury Mantra Hotel Trust.

ALBURY MANTRA HOTEL TRUST

Trust Albury Mantra Hotel Trust

Initial Duration of Trust

5 years from settlement date

Distributions Calculated daily, paid quarterly

Minimum Investment

$250,000 AUD

Offer Amount c. $19,000,000 AUD

Target Gearing Target gearing is expected to be a Loan-to-Valuation Ratio (LVR) of 50% of the property

Expected Distribution Rate

7.75% per annum ¹

Expected Offer Opening

May 2021 with an Investment Memorandum

LEASE AND HOTEL MANAGEMENT AGREEMENT

The property is managed by Mantra under a Hotel Management Agreement (HMA) which expires in 2033. Mantra is the largest Australian based hotel and resort operator with over 22,000 rooms under management and includes such brands as Peppers, BreakFree, Mantra and Art Series. Mantra is owned by the Accor Group, which owns and operates 5,100+ hotels across 110 countries and has approximately 260,000 employees.

In order to ensure regular, distributable income over the 5 year term of the Trust, Sumner Capital has secured a lease which expires in 2033 and has annual rent reviews of CPI+1%, an initial 12 month bank guarantee as security and the right for the Investment Manager to terminate the lease, subject to break costs, in order to be able to sell the property as either a leased property or a Vacant Possession property in order to maximise its saleability. The Lessee, Albury R Holdings, is an experienced hotel owner-operator with over 20 years’ experience.

Sumner Capital Investment Services Pty Ltd (“The Investment Manager”) is pleased to launch this unlisted Trust, designed for eligible wholesale investors seeking a long-term investment and provides the opportunity to own an indirect interest in a modern, regionally located hotel investment that aims to provide investors with an attractive distribution.

INVESTMENT OVERVIEW %¹ Expected initial net cash distribution, paid quarterly. Net of Fees, Costs and Property Taxes

7.75 PA

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OFFER SUMMARY

Counter-cyclical hotel investment with secure high yielding income

The Albury Mantra is a 146 room, 8-level hotel located in the heart of the Albury CBD. The hotel is a 4.5 star, high quality, purpose built, modern hotel which opened in 2018 and which provides guests with a selection of studios and suites, each with newly appointed bathrooms, contemporary furniture, air conditioning and in-room WiFi.

Services include high quality restaurant and bar, 24 hour reception, laundry services, fully equipped gymnasium, kids zone, internet lounge, executive lounge, conference and business facilities.

The Property will be held first and foremost to generate rental income that will be the source of distributions for the Trust. The Investment Manager believes the opportunity is a counter-cyclical investment in an arguably over-sold sector due to the COVID impact where revenue, ADR (Average Daily Rate) and occupancy have rebounded post the COVID trough and subsequent Victorian border closure.

THE PROPERTY

Property 524 Smollett Street, Albury CBD

Title Details Lot 10 Deposited Plan 1178339

Tenure Freehold Title

Zoning B3 Commercial Core - Albury Local Environmental Plan 2010

Site Area 930.2 sqm

Gross Building Area 8,281 sqm (excluding underground parking)

Rooms 146 rooms

Food & Beverage High quality restaurant and bar

Amenities & Facilities First floor function space and meeting rooms with breakout space. A gymnasium on Level 4 and Executive Lounge on Level 8

Lease & HMA Expiry 2033

Occupancy 100%

Grade 4.5 star

ASSET SUMMARY

Purchase Price $32,000,000 AUD

Net Rent p.a. $2,450,000 AUD

Net Rent Per Room $16,780 AUD

Initial Yield 7.66%

Rate Per Room $219,178 AUD

PROPERTY ACQUISITION METRICS

Albury is separated from its twin city of Wodonga by the Murray River, with Albury to the north and Wodonga to the south of the river. The twin towns are located at the centre of the Melbourne, Sydney, Canberra triangle, forming a major transit point.

Albury is serviced by road via the Hume Highway, in addition to a large regional airport being located within Albury and only approximately 5km from the property. The location of Albury makes it a major stop off point for travellers, whilst also forming a commercial centre for the surrounding border region. Several government departments and larger corporate entities utilise Albury as a service base for the surrounding region, providing increased visitation and corporate travel.

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CORE ALBURY CBD LOCATION

Located on the New South Wales and Victorian border is the major regional community comprising the twin cities of Albury and Wodonga. The two cities combine to form Australia’s 13th largest non-capital city with nearly 95,000 residents³. The major regional city is forecasted to achieve a population of over 126,000 by 2036 an average annual growth rate of 1.64%.

524 Smollett St is located in the heart of the Albury CBD with frontage to Smollett Street as well as AMP and Volt Lanes. The property is centrally positioned within Albury’s retail precinct. Dean Street is the focal point of commercial activity, situated just 100 metres to the north of Volt Lane with Smollett Street and the Westend Plaza Shopping Centre with Coles, Target and Kmart only a short distance away. The location provides a wide array of speciality retail/food choices, a 500 space multi-level car park with Volt Lane providing the link between the existing retail anchors of the Myer Centre, Dean Street and Westend Plaza Shopping Centre.

Albury is a modern, vibrant regional city on the northern banks of the Murray River, in the Riverina region of south-eastern New South Wales. It forms part of the Albury-Wodonga urban area with a greater regional population of some 200,000 people, and is the major retail, commercial, administrative, tourism and cultural centre for the region.

PROPERTY LOCATION

WESTEND PLAZA(COLES & KMART)

ATO BUILDING

MURRAY ART MUSEUM

COMMERCIAL CLUB

ALBURY ENTERTAINMENT

CENTREALBURY MANTRA

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PROFESSIONAL MANAGEMENT

Sumner Capital will be responsible for the investment management including property management, asset management, strategy and day to-day management of both the Trust and the property.

Sumner Capital has over 12 years’ experience in property and property-based investments. Investors in the Trust will benefit from Sumner Capital’s expertise in property acquisitions, funds management, property management and asset management.

Sumner Capital is an independent, privately owned real estate investment manager and adviser with a strong track record in delivering attractive risk-adjusted returns.

Licensed by the Australian Securities and Investment Commission (AFSL No. 466735) we apply the highest standards, attention and skills to the management of each asset.

FORECAST QUARTERLY INCOME

The Trust is forecast to provide investors an initial distribution yield equivalent to 7.75% per annum ¹ calculated daily and paid quarterly (net of fees, costs and property taxes).

FIVE-YEAR INITIAL TERM

The initial term of the Albury Mantra Hotel Trust is expected to be five years from the property settlement date (anticipated around Q3 2021).

WEIGHTED AVERAGE LEASE EXPIRY

The property features a 11.75 years weighted average lease expiry (by income as at June 2021).

MAKE AN INFORMED DECISION

All investments in unlisted property trusts carry risk. As the Trust will invest in property it carries the market, property, and leasing risks associated with investing in property, particularly a hotel property. The main risks will be summarised in the Investment Risks section upon release of the Information Memorandum (IM).

As a geared investment, the Trust carries associated financial and leverage risks. Risks can have an impact on distributions and capital returns over the term of the Trust. Before making an investment decision it is important that you read the IM in full once released, understand the risks of investing, and seek personal financial advice based on your own situation, circumstances, and needs from a licensed Financial Adviser.

¹ Expected initial net cash distribution, paid quarterly. Net of Fees, Costs and Property Taxes

FEATURES OF THE TRUST

STRICTLY PRIVATE & CONFIDENTIALThis communication and/or brochure has been prepared by Sumner Capital Pty Ltd (Sumner Capital) ACN 112 051 153 AFSL 466735. This brochure is intended as an expression of interest only and does not constitute an offer of units. This communication and/or brochure is distributed to investors who meet the definition of a wholesale investor as defined in the Corporations Act 2001. Any information in here is preliminary only and is not to be taken as final. The numbers and projected returns are a guide only and are based on current conditions prevailing in the market at the date of this communication and are subject to variation. The information contained in this EDM and/or brochure is for general information purposes only, does not constitute financial product advice and does not consider your objectives, financial situation and needs. You should consider whether the advice and/or the product is suitable for you and your personal circumstances and we recommend that you seek personal financial product advice on your objectives, financial situation or needs and obtain and read the relevant Investment Memorandum when it becomes available before making any investment decision. An Information Memorandum will be issued by Sumner Capital in the future and will be made available at www.sumnercapital.com.au. You should obtain a copy when available, understand the risks including loss of part or all of your income or diminished returns. The Trust is not a bank deposit and Sumner Capital does not guarantee performance.

OFFICE

1800 979 790 sumnercapital.com.au info@sumnercapital.com.au Level 3, 5 Essex Street The Rocks NSW 2000

KIRBY PARSONAGEPrincipal - Head of Property

+61 405 562 401 kp@sumnercapital.com.au

MATT WHITBYPrincipal - Investment & Capital

+61 418 404 854 mw@sumnercapital.com.au

INTERESTED?CONTACT OUR TEAM