MA Financial has agreed to acquire the Vibe Docklands hotel in Melbourne, Australia, from Singaporean real estate group Hiap Hoe in an A$96m ($62.34m) deal.

This purchase marks the inception of the MA Accommodation Hotel Fund, an open-ended wholesale fund designed to offer investors access to the accommodation sector.

The fund is set to target high-quality hotel assets, aiming to provide a ‘robust’ distribution income stream and a ‘compelling’ total return profile.

Situated on a waterfront at the edge of Victoria Harbour with views of the Melbourne, Central Business District, Vibe Docklands features 273 guest rooms, as well as conference facilities.

It also comprises a fully licensed bar, bistro and café, a gym, an outdoor swimming pool, and car parking spaces.

Furthermore, MA Financial has confirmed that TFE Hotels will operate the property under its Vibe Hotels brand, upon completion of the acquisition.

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MA Financial joint CEO Julian Biggins said: “We are excited about the purchase of Vibe Docklands and expect it will be the first in a range of hotel properties we acquire in the near term.

“We believe that the dislocation caused by the global pandemic, increased construction costs and the current macroeconomic conditions create a compelling opportunity to acquire accommodation hotel assets on very attractive terms. This is expected to generate strong risk-adjusted returns for fund investors.

“Accommodation hotels fit perfectly within our specialisation as an alternative real estate asset manager, where we add value through identifying unique situations and actively managing assets for the benefit of investors.”

The transaction is subject to certain conditions.

Hiap Hoe will use the proceeds from the sale to repay debt and meet working capital needs.