Investors
Secured Notes Opportunity
About
Regional Motel Partners has been established to acquire and operate leasehold motels in large regional towns in Australia.
The strategy of the Company is to build a portfolio of motels over the next 5 years, with the view to ultimately assessing the suitability of a trade sale or listing with the Australian Stock Exchange.
To assist in this growth, the Company is offering a series of senior secured notes to sit alongside founder ordinary equity. Each series will have security over all assets of the Company.
Senior secured notes are only available to wholesale and sophisticated investors as defined under the Corporations Act 2001 (Cth) who complete an application form within the Information Memorandum.
Key
Features
1 / Interest Rate
Interest is payable monthly in arrears and accrues daily on the Outstanding Principal Amount. Each tranche can have a different interest rate. Series 1 notes pay 12.0% per annum.
2 / Investment Term & Liquidity
Each tranche will have a different investment term and maturity. Series 1 matures on the 31 May 2028, roughly 3 years from inception. The Company may Redeem earlier at any time upon giving 30 days notice.
3 / Minimum Investment
$100,000
4/ Security and Ranking
First ranking, all assets security over the Company, to be held by the Security Trustee pursuant to the Security Trust Deed. The Secured Notes will rank equally among themselves and will rank ahead of any other financial indebtedness of the Company.
5 / Transfer
A Noteholder may assign, transfer or otherwise deal with its Secured Notes, at any time, with the prior written consent of the Company.
6 / Negative Pledge
In the event Noteholder interest is capitalised the Company must not make or pay any distribution to equity holders unless all accrued and capitalised interest on Secured Notes has been paid.
7 / Events of Default
Each of the following is an Event of Default:
• the Company fails to pay the Outstanding Principal Amount on the Maturity Date;
• the Company fails to comply with any condition set out in the Note Terms;
• a material misleading representation made or repeated by the Company in respect to the Secured Notes; or
• the Company suffers an insolvency event.
Each series has the following common terms:
A Proven Model. A Compelling Opportunity.
Factors that make this an attractive investment opportunity
12.0% p.a. fixed return
Income paid montly
Secured by all assets of the Company
Ranks ahead of founders equity
First ranking with no bank debt
Why Invest in Motels?
Attractive Yields
Leasehold motels are high cashflow businesses, offering attractive yields,
Tourism Growth
Australia has experienced a step change in regional tourism, as a result of government initiatives and Covid, which allowed us to reacquaint ourselves with domestic travel.
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Performance Upside
Opportunity to improve the performance of previously family-run businesses by adopting superior financial management and best in class operational management.
Stable Business Model
Motels are very resilient businesses due to consitent local and business demand. Significantly more so than accomodation like hotels and resorts.
Limited New Supply
Despite the continued strong growth in Australia's population, the number of motels in Australia has remained more or less unchanged for 30 years,
Cottage Industry
The motel industry is still mostly run and owned by small private family operations, providing scope for consolidation.