Harvest Hospitality has begun its next stage in expansion with the launch of its latest investment vehicle, the Harvest Hospitality Income Fund (HHIF).
HHIF is an open-ended fund intended to deliver consistent, sustainable cash distributions, underpinned by capital growth. It is aiming for $500 million in assets under management over the medium term.
The fund provides opportunity for wholesale investors, and for the first time retail investors, to receive regular income from expertly operated hospitality assets, leveraging Harvest’s operational platform.
“The launch of the Harvest Hospitality Income Fund is a significant step in broadening our investment offering while staying true to our core business – operating pubs,” explains Group CEO and co-founder, Chris Cornforth.
HHIF will look to freehold going concern, leasehold-only and freehold-only investments, combining hands-on operational management with a disciplined investment strategy.
“We’re connecting investors seeking regular income, to a sector that we believe continues to demonstrate resilience and long-term value,” Cornforth adds.
Consistently active in its portfolio management, the company divested its Milestone Hotel in Dubbo and Aussie Inn in Adelaide in August, from Harvest Pub Fund 1. In October it parted with the Northside Hotel in Lavington.
These followed the announcement in July the group was rebranding to Harvest Hospitality and soon beginning new investment vehicles.
Founded in 2014, Harvest began as the two-person team of Cornforth and Fraser Haughton running small bars. It has bought, sold and grown to currently count 12 hotels across NSW and South Australia, with a network of more than 600 staff and head office of 30.
The launch of HHIF comes after the group has significantly bolstered both its investment capability and governance. James Hannhas become a co-owner and taken up the role of Chief Investment Officer, joined in the Investment Committee by Charlie Viola, founding partner of Viola Wealth, Grant Samuel CEO Damien Elias, and former HPI CEO John White, finding new footing after the HPI Board accepted the $760 million takeover bid by Charter Hall and Hostplus at the start of the year.
Executive director Mark Pratt joined Harvest in 2024, bringing more than 30 years’ experience in funds and investment management. He suggests HHIF is a well-structured investment vehicle, geared to use “attractive, profitable, and highly engaging” assets to meet growing demand and interest in the sector,
“And let’s be honest, who wouldn’t want to invest in a great pub?” he says.
Marking the next chapter in its evolution as a leading hospitality investment manager, Harvest is now accepting applications into HHIF. The fund has a target annual distribution yield of 6-8 per cent and IRR target of 10-12 per cent per annum, post fees. Distributions are to be paid quarterly, with capped withdrawal facilities and periodic liquidity events.
The new vehicle already has three seed assets in the pipeline, including purchase of Brady’s Railway Hotel in Albury for around $25 million. And it is rumoured to be eyeing the buoyant southeast Queensland market with possible acquisition of the Shafston Hotel in East Brisbane from Sydney-based hoteliers Tilley & Wills, who were recently declared Best Group Operators at the AHA Awards.
