Mandala raises $ 200 million for regional accommodation fund

0


Mr Zeckendorf said the property, renamed Rydges Armidale, is Mandala’s 20th asset and the fifth he has purchased this year.

“We plan to continue our strong growth in 2022. We have always favored regions over large capitals for superior returns, income stability, low correlations of returns, less competition and much less volatility,” said Mr. Zeckendorf.

“This has been our mantra since we started 14 years ago. It has definitely become more popular in recent times as other investors have taken hold of this asset class. “

He does not expect high asset prices in some regional areas to continue as domestic tourism demand normalizes.

“We believe that domestic tourism will experience a spike in sugar as people can travel but don’t want to go abroad,” Zeckendorf said, adding that Mandala tends to buy properties with a diverse clientele.

“But beyond that, it will drop to a standardized level.

“This might be a different normal than what existed in 2019, especially for the regions, but we don’t think the sugar surge will continue indefinitely.”

He said Mandala has so far raised a total of $ 22 million for its latest fund, TARHF III, which aims to own 20 to 35 properties.

The target size is 30+ rooms, a minimum turnover of $ 1.5 million, and a purchase price of between $ 5 million and $ 25 million.

“It’s likely we’ll be raising $ 100 million soon enough and that will keep us going for most of next year, and we’re okay with the second $ 100 million coming after that,” a- he declared.

“We have a few people saying ‘we’ll come for the lot’ so it can go to one party rather than several, anyway, that’s okay.”

In terms of exit, Zeckendorf said Mandala would be open to a merger with other sector funds such as the one managed by MA Financial, for which it already manages assets, to gain scale and either list or sell. to a great fund.

“The bigger it is, the better it is in wholesale releases,” he said.

Leading property coverage delivered to your inbox. Sign up for our weekly Inside Property newsletter.


Share.

Comments are closed.