INVESTORS in the Commonwealth Property Hotel Fund have extended the fund's closing date.
Yesterday, unitholders elected to extend the term of CPHF by three years to May 2011.
CPHF’s is Colonial First State Global Asset Management’s flagship direct hotel property fund.
The fund owns four Marriott branded hotels in
CPHF’s senior fund manager John van der Wallen said the decision to extend the closing date of the fund is a vote of confidence from unitholders in the management.
The fund has returned 15.2% pa, pre fees, since inception in May 2000 and generated recent strong returns of 38.6%, pre fees, in the 12 months to April 30.
van der Wallen said the decision by unitholders to agree to the stapling of the fund’s assets is expected to have a positive effect on returns for the 12 months to June 30.
As a result of the changes approved, the fund will be opened to new investment later this year.
“It’s pleasing to receive the support of our unitholders to extend CPHF for a further three years. The vote provides CFSGAM with greater control over the management of assets, which will help us extract maximum value for our investors. Looking ahead, we expect to realise considerable future savings from streamlining our operations as approved at the meeting.
“The enhancement to the fund structure strengthens and further aligns the relationship between CPHF and Marriott, to the benefit of all fund investors,” he added.
van der Wallen said the hotel sector continues to offer attractive returns to investors.
“While demand for domestic, leisure-based occupancy is expected to soften in the short term, this will most likely be offset by limitations in new supply.
“Domestic and international corporate demand continues to be strong and, overall, continued high occupancy rates are expected for the next three years across the portfolio. Average room rates are expected to continue to grow ahead of inflationary trends and consequently, operating profits are likely to rise,” he concluded.
Australian Property Journal
