Harvest Fund looks to enter red hot pub market

The Harvest Pub Fund Series is targeting high net worth individuals looking to co-invest in the equity raising of the Harvest Pub Fund, worth about $25 million.

Harvest will initially incorporate five hotels into the fund – the Courthouse, Pig & Tinder Box bar and restaurant and the Albert Hotel in Tamworth; and the Australian Hotel Motel and the Royal Hotel, both in Yass. It will also look to acquire more properties across regional areas that meet its investment criteria.

Investors are expected to generate an after-fee internal rate of return of about 18 per cent a year, over the anticipated five- to seven-year holding period.

The initial capital drawdown will be 20 per cent of the nominated amount, with the balance drawn by Harvest as required.

The move comes as the pub sector continues its blistering run, with almost $100 million changing hands over the last 12 months.

12^th March 2019