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Salter Brothers Secures Fresh Equity

Fund manager Salter Brothers has secured $104 million in fresh equity to partly fund its acquisition of the NEXT Hotel in Brisbane


Key points:

  • Fund manager Salter Brothers has secured $104 million in fresh equity

  • Recently acquired the 304-key NEXT Brisbane

  • Salter Brothers hotel portfolio now expands to over 2,400 rooms


Fund manager Salter Brothers has secured $104 million in fresh equity to partly fund its acquisition of the NEXT Hotel in Brisbane.


The group is led by brothers Paul and Robert Salter who struck a deal in May to buy the 304 room hotel from Challenger for $150 million. Around 60% of the fresh injection of capital came from Asian-based investors with the fund raising oversubscribed.


Other similar transactions included the Asian-mandated iProsperity Group’s c. $200 million purchase of AccorInvest’s 23 hotel portfolio last week.


Further capital raisings are planned as the group turns its focus to developing new hotels, including in Melbourne and Canberra, with an eye on Salter potentially floating a $1 billion hotel property trust.


Salter used to be teamed up with iPG’s Michael Gu with whom they founded SB&G Group in 2014. The NEXT Hotel acquisition is Salter’s first since splitting from Gu.


Melbourne-based Salter Brothers is a global fund manager with a focus on specialist property, credit & private equity, including the ownership of multiple hotel assets in America and Australia. With the addition of NEXT Brisbane, Salter Brothers hotel portfolio now expands to over 2,400 rooms with seven hotels across Sydney, Melbourne, Canberra, Brisbane and the Gold Coast.