Hospitality Real Estate / Income
Neighbourhood Income
A property-led strategy focused on hospitality real estate and stabilised assets, where long-duration occupancy and quality operators can support recurring income and long-term value.
- Strategy 02
- Australian hospitality
What this strategy does
Neighbourhood Income owns hospitality real estate rather than turnaround risk. The emphasis is on quality of land and improvements, durability of the trading business occupying them, and a lease structure that can be serviced under conservative assumptions.
Assets may be leased to our own operating platform or to selected third-party operators. Where the tenant is related, the arrangement is structured and governed on arm’s-length terms, with the conflict disclosed and managed rather than obscured.
Lifecycle
- Acquire
- Lease / Stabilise
- Income
- Hold
Potential transaction structures
- Hospitality freeholds
- Sale-and-leaseback
- Leased pub and hotel assets
- Stabilised freehold going concerns
- Assets leased to Neighbourhood Venue Co.
- Assets leased to selected third-party operators
Vehicle information
This page describes an investment strategy. No fund, trust or financial product is currently offered through this website. Where a vehicle is established, information will be made available only to eligible wholesale and sophisticated investors through formal offer documentation.
Register interestAsset criteria
Property fundamentals are assessed first, with the operating business assessed as the source of rent coverage.
- Land quality, size and strategic location
- Condition and adaptability of improvements
- Trading durability of the occupying business
- Rent coverage under conservative assumptions
- Lease term, structure and review mechanism
- Operator capability and covenant
- Alternative use and downside value
Transaction structures
- Direct freehold acquisition
- Sale-and-leaseback with the incumbent operator
- Acquisition of leased pub and hotel assets
- Stabilised freehold going concerns
- Assets leased to Neighbourhood Venue Co.
- Assets leased to selected third-party operators
Related-party leasing governance
Where an asset is leased to the group operating platform, the following applies.
- Rent set with reference to independent market evidence
- Lease terms documented on commercial, arm’s-length basis
- Related-party arrangement disclosed to investors
- Independent oversight of the leasing decision
- [Final governance framework to be established and confirmed]
Execution
Delivered through the operating platform.
Neighbourhood Capital
Capital discipline
- Capital allocation
- Acquisitions
- Financing
- Portfolio strategy
- Governance
- Investor reporting
- Asset management
Neighbourhood Venue Co.
Operating capability
- Local operations
- Management support
- Procurement
- Performance systems
- Marketing
- CRM and loyalty
- Data
- People
- Capex execution
Local Venue Teams
Venue execution
- Customers
- Hospitality
- Community
- Culture
- Venue execution
Risk considerations
What an investor is accepting.
- Tenant and operator risk, including default or underperformance
- Vacancy and re-letting risk
- Related-party leasing conflict risk where the tenant is within the group
- Property valuation and capitalisation rate risk
- Financing and interest rate risk
- Illiquidity and the risk of loss of capital
Relevance
Who this strategy is relevant to.
- Investors seeking real asset exposure with an income orientation
- Investors prioritising property fundamentals over operating turnaround
- Investors with a long-term horizon and tolerance for illiquidity
Strategy descriptions describe intended investment activity. They do not constitute an offer of a financial product and no return, income or performance outcome is implied or guaranteed.
Next step
Enquire about Income.
Enquiries are treated confidentially. Detailed information is made available only to eligible wholesale and sophisticated investors.
General enquiries: enquiries@neighbourhood.capital
Australian Hospitality · Private Markets · Real Assets