Elanor Investors Group lifts lid on hotel fund

The Elanor Hospitality and Accommodation Fund will be seeded by Peppers Cradle Mountain Lodge and Mantra Wollongong Hotel.

Elanor Investors Group is tracking to launch hotel and retail property funds managing $200 million of real estate apiece after turning in a healthy $6.3 million first-half profit.

Elanor on Thursday pulled the covers off its new managed trust, the Elanor Hospitality and Accommodation Fund, which will own six Australian hotels with redevelopment potential.

The fund, to be seeded by two Elanor-owned properties — Peppers Cradle Mountain Lodge and Mantra Wollongong Hotel — will start with a $95 million portfolio, which has the potential to grow with a listing of the vehicle ultimately in prospect.

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Elanor chief executive Glenn Willis says setting up the fund has been a key objective and it will hold an initial co-investment of about 40%.

In a sign of things to come, Willis says growing earnings from funds management is a focus of the business.

Chief investment officer Marianne Ossovani said in addition to repositioning and development opportunities in the hotel portfolio, the fund intended to buy more properties.

The company recorded a 22.8% lift in core earnings to $5.7 million, while distributions rose 40.5% to $5.16 million.

Elanor recorded a 2.7% lift in net asset value per security to $1.42. The shares hit $1.66 on Thursday.

This article originally appeared on www.theaustralian.com.au/property.