Rivkin Securites’ Wholesale Funds are available to wholesale investors only. Therefore, Rivkin will not issue a financial services guide, product disclosure statement, or any other retail documentation in relation to this service.
In an environment marked by uncertainty, rising volatility in equities, shifting rate expectations, and fresh tariff concerns, many investors are reassessing their portfolios and looking toward resilient and stable asset classes for returns and diversification.
At Rivkin, we believe the Redcape Hotel Fund represents one of the more compelling answers in today’s market.
Why now? A short window for a long-term asset
This opportunity comes from a temporary pricing inefficiency, not a drop in quality. Due to the wind-up of a Significant Investor Visa (SIV) fund, a large volume of Redcape units (~$50 million) is being offered at a 3.33% discount to NAV ($1.45 vs. $1.50). Importantly, this is purely a liquidity-driven sell-down, with no underlying performance concerns.
In fact, revaluations are expected to lift the NAV to around $1.55 by the end of June, presenting the potential for a 7% capital uplift within the first 4-6 weeks of investment.
Stable income, with a tax-effective advantage
Based on the offer price, Redcape is targeting a distribution yield of 7.5% for FY26 of which around 60% is tax-deferred. This can result in a more favourable after-tax outcome, particularly when compared to fully taxable listed income or fixed interest products.
Built for real portfolios
With quarterly income, tax efficiency, asset-backed growth, and relatively low volatility, Redcape offers a strong complement to traditional portfolios, particularly at a time when listed assets are proving more sensitive to macro headlines and market swings.
For many investors, this opportunity ticks multiple boxes:
- Defensive, cash-generating real assets
- Low volatility, with NAV-based valuations
- High barriers to entry and stable demand
- Liquidity (quarterly) and a known redemption window in late 2026
This discounted entry window is limited and exists solely because of a forced redemption. Once it’s absorbed, the pricing opportunity disappears. This opportunity is expected to close by the start of June 2025.
Since inception, Redcape has delivered a return of 12% p.a., navigating through challenges such as COVID-19, inflation, and rising interest rates. Looking ahead, the manager is targeting a total return of 15% p.a. over the next two years, supported by earnings growth, active asset management, and capital deployment strategies already in motion.
Why Redcape Stands Apart
Redcape is one of Australia’s large pub investment funds, providing investors with exposure to over $1.1 billion of high-quality hotels across the east coast, 93% of which are freehold, and 73% located in Greater Sydney. These are established, community-centric venues with diversified income streams across food, beverage, accommodation, and gaming.
Importantly, this asset class has historically demonstrated strong resilience across market cycles. Pubs have remained operational through COVID, inflation spikes, and rising rates, providing essential local services that enjoy consistent patronage, high foot traffic, and low substitution risk. That kind of stability is increasingly valuable as investors grapple with global macro uncertainty.
The fund is actively managed by Redcape Hospitality, supported by MA Financial, and backed by a team with over 200 years of collective operational experience. Their approach includes:
- Recycling lower-yielding assets into higher-returning venues
- Targeted refurbishments aiming for 20%+ return on invested capital
- Conservative gearing (currently 37%) with debt fully hedged
If you would like to learn more about the Redcape opportunity and how it might complement your broader investment strategy, don’t hesitate to reach out.
Access to Wholesale Investor Content
- Asset Test: You have net assets of at least $2.5 million
- Income Test: Gross income of at least $250,000 per annum over the past two financial years
- Professional Investor: You hold an Australian Financial Services Licence (AFSL) or control assets of at least $10 million.
I meet the criteria outlined above and understand that the information provided is intended for wholesale investors only.
I do not meet the criteria and understand that I cannot proceed further.
