Specialist Suburban Office and Hospitality Fund Manager, Stronghold Investment Services has opened subscriptions for a single asset, fixed term, wholesale managed investment to purchase The Cardinia Club and land holdings in Pakenham.
The Cardinia Club, located at 71 Racecourse Road, Pakenham is an established entertainment facility inclusive of Sports Bar, bistro, TAB, gaming, 105 gaming machines and function spaces on a 1.665ha parcel of land.
Stronghold Executive Director and Head of Property Steve de Nys said the Stronghold Hospitality Trust No 15 was expected to be attractive to investors seeking exposure to a Melbourne Metropolitan growth corridor and who were looking for relatively stable returns in a volatile market.
The tenant for the property, Pakenham Racing Club (PRC) was established in 1875 and today boasts approximately 17,000 members across two hospitality venues. The Club operates 165 gaming machines, employs over 160 people and is a major contributor to the local economy and community
The property will be leased to the Pakenham Racing Club for 13.3 years from settlement.
“The trust has a projected average annual return of 7.25% over the first three years and there are opportunities to improve that return with additional land available for future development (subject to council approval).”
Mr de Nys said Pakenham was experiencing strong economic and population growth (averaging 4% over the past 10 years) and was the geographic and economic centre of the Cardinia Shire.
He said the Cardinia Club was located at the heart of the city and good exposure to Racecourse Road, an arterial road linking the Princes Freeway and Princes Highway.
A proposed to 64 room Mercure Hotel is to be constructed adjacent to the Cardinia Club with common access. According to de Nys, ‘there is an obvious synergy between the two assets and their operations which we believe will be enhanced by the current shortage of alternative short-term accommodation within the area.
For more information about the Stronghold Hospitality Trust No 15 and a copy of the Investment Memorandum please visit https://www.strongholdinvest.com.au