Piece of Melbourne pub yours for just $50
Imagine being able to boast to your mates you own a pub?
Now wannabe publicans can own their own piece of a bar, for as little as the price of a few rounds, thanks to an Australian-first initiative launched by the Sporting Globe Bar and Grill.
Sporting Globe Plenty Valley, due to open in late-March is offering the public, through equity crowd-funding, a chance to own a piece of the new venue that will anchor the Westfield’s redeveloped entertainment precinct.
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Budding entrepreneurs can get in the game for a minimum investment of only $50, or a maximum of $10,000.
When open, the bar could become the first venue in Australia to be partly owned through crowd-funding.
Australian equity crowd-funding platform, Birchal, which has been issued with an Australian Financial Services license for crowdsourced equity funding, had accepted expressions of interests up until last week.
However, punters wanting to get in on the action can still do so as long as there is equity available for sale.
So far, the franchise has received 133 expressions of interest and secured offers totalling $680,000.
The Sporting Globe owner James Sinclair at the Westfield Chermside venue.
Equity holder benefits will be announced post EOI, but may include a share in the business and possibly ongoing dining discounts, exclusive offers and priority event access.
Equity holders will not be required to pay ongoing costs.
Sporting Globe CEO James Sinclair says that if successful, the crowd-funding model will be rolled out at future venues around Australia.
“In a franchise model, we are all about partnering with local operators and this is the ultimate model to do so,” Sinclair says.
“It makes sense to offer our customers a piece of the pie — it creates an intrinsic loyalty if patrons have skin in the game.
“I think it is exciting and if it works it can open up an avenue for younger investors who just don’t have the access to capital to franchise a venue on their own.”
Birchal spokesman Alan Crabbe says equity crowd-funding will be huge in Australia, particularly for local business.
“It’s already capturing the imagine of entrepreneurs,” Crabbe says.
“We’re a nation of early adopters and I believe this capital raising model will prove popular with Millennials.”
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This article from Leader Newspapers first appeared as “Sporting Globe Plenty Valley gives punters a piece of the action in crowdfunded Victorian pub”.
