Ales and sails: Mark Carnegie’s sea change for Australian Pub Fund IPO

Nothing beats a beer on a boat, and the high-profile gang behind the Australian Pub Fund will be hoping investors feel the same as they add leisure assets like marinas to their core hotel portfolio, preparing an initial public offering worth as much as $500 million for as early as this year.

The Fund, a brainchild of Sydney publicans Patrick Coughlan and Rodney Kelly who own 10 per cent apiece, also boasts on its register former Qantas boss Geoff Dixon (he's also chairman), investment banker Mark Carnegie, adland legends John Singleton and Mojo co-founder Allan Johnston, and industry fund SunSuper which kicked in $65 million earlier this year.

The inn crowd: Paddy Coughlan, Jack and John Singleton, Geoff Dixon, Mark Carnegie and Allan Johnston are adding general leisure assets like marinas to their core pub portfolio in preparation for an IPO.

The Fund's initial strategy of buying distressed pubs in the aftermath of the GFC has changed with insiders confirming that general leisure assets such as marinas could be added to the $200 million pub portfolio, potentially doubling the value of an IPO as reported in The Australian Financial Review on Thursday.

The closeness of a potential IPO has been underscored with legal advice to the Fund principals to not talk further to media about the evolving portfolio, to avoid falling foul of Australian Securities Exchange disclosure rules.

It's undecided which leisure assets will be rolled into the IPO, and whether they will include assets already owned by the backers. Mark Carnegie has been an active investor in boat marinas for some time.

Source: Financial Review, 12 September 2013