Public Hospitality Group

Opportunity Closed


Per Annum Return

Interest Paid Quarterly

Discount to IPO Price

75% Max LVR

PUBLIC is on a mission to create Australia’s premier millennial lifestyle network of hospitality venues.

Equitable Investors Pty Ltd ATF Public Hospitality Unit Trust (“PUBLIC”) is a lifestyle, accommodation and hospitality business undertaking a capital raise to repay debt & fund growth. The team has identified a market gap in accommodation, sitting between the traditional short and long stay markets. They plan to exploit this gap by transforming underutilised assets in unique neighbourhoods into vibrant and bespoke lifestyle and accommodation experiences, at accessible prices.

The company is raising $43m ahead of an anticipated listing via a Secured Convertible Note

Upon listing, investors can elect to redeem their notes, or convert to stapled securities at a 15% discount to the IPO price

Interest will be paid to investors until 30 November 2022, regardless of conversion or redemption.

Public Hospitality Group Investment

Public Hospitality Group

Sophisticated Investors

To be considered for this investment product; applicants must supply evidence they qualify as a Sophisticated Investor.

Business and Property Assets
  • 14 hotels located in some of the most desirable suburbs of Sydney, Melbourne & Regional NSW (“Properties”); and
  • the operating company Public Hospitality Operating Co Pty Ltd (“Opco”).
Raising and Use of Proceeds
  • Raising up to $43 million
  • Secured loans to vendors to repay existing mezzanine debt and fund the properties’ capex and some working capital.
Transaction Structure
  • Redeemable Secured Convertible Note
  • All asset security including registered 2nd Mortgages over 8 Properties (“Secured Properties”).
Proposed IPO
  • Targeting Q2 2023 listing of stapled securities in PUBLIC and Opco.
Investment Terms Summary



Up to A$43 million (driven by LVR) of which:

Public Unit Trust: $42.95m OpCo: $0.05m


Secured Convertible Note


April 2023 with intent to IPO in Q2 of 2023


12% p.a, paid quarterly (Mar, Jun, Sept, Dec) until

conversion (IPO) or redemption. Interest guarantee for period to 30 Nov 22, regardless of prior conversion or redemption


Prior to IPO (at election of the noteholder) or at term (if no IPO prior)


If not redeemed, all Notes will convert to stapled securities at the time of the IPO at a 15% discount to the IPO price 


All asset security over Public Unit Trust and its assets including loans to vendors and Reregistered 2nd mortgages over eight Secured Properties with total LVR (including Senior) not to exceed 75% of Freehold valuation of $242m


2 noteholder representatives (including Thorney) on Board of Manager of the Public Unit Trust


Loans to vendors to replace mezzanine debt and

progress development of the properties

Investment Highlights


Backed by a prime real estate portfolio of over $378m on a freehold (leased) basis and in excess of $477m on a going concern basis. 


15 venues, 14 owned, with diversified revenue streams including 230+ rooms, functions, events, and gaming – fully operational by mid 2022.

Projected full year EBITDA of current properties over $30m, before venue management agreements and any additional property acquisitions.

Access to the growing co-living market segment, addressing the needs of the fast growing 18-35 Millennials demographic.

The Properties

*Do not form part of security pool **Operated Asset owned by third party

($’000s)First Mortgage ValuationValuerStabilised EBITDA13rd Party Rental Income2Going Concern Implied Val.Senior DebtCurrent Junior Debt3Proforma Registered 2nd MortgageProforma LVR%
The Arts Hotel461,250Egan4,60451569,85934,95011,00011,00075.00%
The Exchange Hotel, Darlinghurst4 41,600CBRE3,600-51,43124,9606,2406,24075.00%
The Strand, Darlinghurst4 33,100Egan3,221-46,00818,3005,6006,53075.00%
Rose Shamrock & Thistle27,000Egan2,024-28,91316,0002,7504,25075.00%
Camelia Grove, Alexandria4 26,000Hymans2,171-31,01814,8504,5004,65075.00%
Clifton, Kew22,800Hymans1,75531027,53012,0005,1005,10075.00%
The Norfolk Hotel, Redfern4 19,000Hymans1,910-27,29210,8003,2503,45075.00%
The Vine Hotel11,400Castle1,124-16,0515,0001,7501,75059.20%
Empire, Annandale34,500Egan2,76410640,33315,5003,000
The Saint20,000Hymans2,016-28,79612,000-
Ballina Beach House15,500Hymans1,987-28,3909,0002,500
The Exchange, Balmain25,800Egan2,236-31,94814,7903,163
The Town Hall Hotel, Balmain23,000Egan1,52726023,87914,0003,163
The Kurrajong Hotel, Erskineville18,000Egan1,791-25,58710,3203,163
Freehold Valuation is the basis of the Convertible Note LVR covenant of 75%
1.Excluding Rental Income. 2.EBITDA capitalised at 7%, Rental Income capitalised at 4.5%. 3.Junior Debt on Secured Properties to be repaid with proceeds from Convertible Note. Junior Debt on Properties Excluded From Security Pool will not be refinanced at this time because interest is already pre paid. 4.Included Properties in Senior Refinance per signed term sheet.

Gleneagle is a Private Investment Bank, connecting individual investors to institutional resources.

Invest at the Source

Leverage Gleneagle’s relationships and buying power to gain access to the same investment vehicles used for their own bank capital.

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Each deal is subject to extensive credit assessment, compliance, and underwriting conditions. Each year, only a select few meet Gleneagle's strict criteria.

Aligned Interests

All deals we facilitate and put forward to you are coinvested by Gleneagle, ensuring our interests are always aligned with yours.


Funds Under Management & Advice

Team Members
56,000 +
& Counting
≈ $ 4B +
Statistics relative to Gleneagle Securities (Aust) Pty Limited and its wholly owned subsidiaries

Investment Documentation

Information Memorandum

Click to download PDF

Trading Update

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Access Offer

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