MinterEllison has had a long relationship with Salter Brothers, having helped to establish the group in November 2015. The firm also undertook Salter Brothers first hotel portfolio acquisition in December 2015, and has since acted for the group in all subsequent acquisitions.
Following completion of the NEXT Hotel acquisition (which is currently expected to occur by 31 July 2019):
- the Salter Brothers Hotel Group will hold over A$1 billion of assets, which was it stated target from inception; and
- Salter Brothers Hotel Group will own 7 hotels across Sydney, Melbourne, Canberra, Brisbane and the Gold Coast together with two development hotel sites.
Alongside its latest acquisition, MinterEllison is also working with Salter Brothers on two separate capital raisings which together total up to $240 million. These capital raisings will fund further acquisitions and developments which are also aimed at attracting cornerstone institutional investors ahead of a potential float.
"We've seen a wave of hotel deals, as buyers begin to look beyond traditional residential and commercial property in favour of stabilised returns that the hotel sector typically generates," said Joseph Pace, MinterEllison's lead Partner. "This acquisition of NEXT Hotel is timely for Salter Brothers, with the Brisbane market starting to mature with a number of projects underway and high levels of private and public investment activity set to position the city as a major global destination."
"Our team at MinterEllison will be working with Salter Brothers to undertake potential further acquisitions and build and open their development assets," said Mr Pace. "In the future, if the market conditions are right, Salter Brothers Hotel Group may look at undertaking an IPO."
Salter Brothers Hotel Group's rapid growth illustrates the sector's potential. If Salter Brothers decide to pursue and is successful in their IPO, it would signal the return of hotel REITs to Australia.
The MinterEllison team advising on the acquisition of NEXT Hotel is being led by Joseph Pace (Partner), Alice Langham (Special Counsel), Euon Williams, Esmond Prowse (Senior Associates) and Samantha Blissenden (Lawyer). The broader team assisting with this project includes David Moore, Matthew Missaghi, Adrian Varrasso, John Riley and Geoff Earl (Partners), James Hamblin and Robert Yunan (Special Counsels), Sarah Hampson, Amanda Marinakis and Leigh Schulz (Senior Associates), Julia Riley, Lachlan Pramberg and Annabel Roden (Lawyers).
The MinterEllison team advising on Salter Brothers capital raisings is being led by Joseph Pace (Partner), Esmond Prowse (Senior Associate), Hannah Dixon (Associate) and Jess Rogers (Lawyer) and includes Bart Oude-Vrielink, Adrian Varrasso and John Riley (Partners), James Hamblin and Robert Yunan (Special Counsels), Leigh Schulz and Jacki Wang (Senior Associates), Julia Riley, Marissa Piazza, Philippa Symon, Georgia Rowell, Wendy Lim and Daniel Fahey (Lawyers).
