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NeighbourhoodCapital
Printed valuation documents and an architectural site plan on a timber desk

Our approach

A repeatable process, applied consistently.

Hospitality rewards discipline more than conviction. Our process is deliberately unremarkable: the same questions, asked in the same order, of every opportunity.

  • Origination to realisation
  • Seven stages

Investment principles

What we hold to, transaction after transaction.

  • 01

    Underwrite both assets

    A hospitality venue is an operating business standing on real estate. We assess each independently, then reconcile them. Where the two views disagree, that disagreement is treated as information rather than noise.

  • 02

    Assume the downside

    Every investment case includes an explicit downside scenario built on conservative assumptions. If the downside is not survivable, the upside is irrelevant.

  • 03

    Price the capital works

    Capital expenditure required to sustain trade is separated from capital expenditure intended to improve it. Both are scoped before completion, not discovered after it.

  • 04

    Own the execution

    We do not underwrite improvements we cannot deliver. The operating plan is written by the people who will be responsible for carrying it out.

  • 05

    Preserve optionality

    We avoid structures that force a single outcome. Realisation should respond to conditions at the time rather than to an assumption made years earlier.

  • 06

    Report plainly

    Investors are told what happened, including when it differs from what was expected. Reporting frameworks are established at fund formation.

Investment thesis

The characteristics we are underwriting.

Four features of Australian hospitality inform every investment decision we make.
  1. 01

    Real Assets

    Hospitality venues often combine operating businesses with strategically located real estate.

  2. 02

    Recurring Local Demand

    Strong venues can become embedded within their communities and benefit from recurring customer behaviour.

  3. 03

    Operational Alpha

    Performance can be influenced through better systems, people, pricing, procurement, marketing and capital investment.

  4. 04

    Fragmented Ownership

    A fragmented market can create opportunities to partner with independent operators and acquire assets outside large institutional portfolios.

These characteristics describe why we focus on the sector. They do not guarantee returns, and each investment is assessed on its own merits, with explicit downside cases.

Investment process

Origination through to realisation.

Seven stages. Each has to be satisfied before the next begins.

  1. 01

    Originate

    Identify opportunities through operator relationships, advisers, brokers and direct owner conversations.

  2. 02

    Screen

    Assess whether the asset and the operating business both stand up to scrutiny.

    • Asset quality
    • Location
    • Venue fundamentals
    • Operator capability
    • Financial performance
    • Real estate
    • Licences
    • Capex
    • Potential downside

  3. 03

    Underwrite

    Build the investment case across operating and property fundamentals.

    • Normalised EBITDA
    • Valuation
    • Debt capacity
    • Downside, base and upside cases
    • Capex
    • Exit scenarios
    • Investment return cases

  4. 04

    Investment Committee

    An independent investment decision process. [Final governance framework, committee composition and delegated authorities to be established and confirmed.]

  5. 05

    Execute

    Acquisition, financing, transition and operating plan.

  6. 06

    Improve

    Venue-level transformation and asset management through the operating platform.

  7. 07

    Realise / Recycle

    Optionality rather than a single mandated exit. Potential pathways include:

    • Refinance
    • Hold for income
    • Sell individual asset
    • Portfolio sale
    • Transfer to longer-duration vehicle
    • Recapitalisation

Asset management

The work after completion.

Completion is the beginning of the investment, not the end of it. Asset management runs on a fixed cadence rather than in response to problems.

Operating cycle

  1. Plan
  2. Install systems
  3. Measure
  4. Adjust
  5. Reinvest
Operating platform
Detail of a heritage hotel verandah balustrade in raking afternoon light

Governance

How decisions are made and conflicts are handled.

Governance frameworks are being formally established. The items marked in brackets are pending confirmation and are shown here rather than implied.

Investment decisions

  • Independent investment committee process
  • Documented investment memoranda
  • Delegated authority framework
  • [Committee composition to be established and confirmed]

Conflicts management

  • Related-party leasing to the group operating platform disclosed and governed
  • Arm’s-length terms supported by independent market evidence
  • Allocation policy between strategies
  • [Formal conflicts policy to be established and confirmed]

Reporting and oversight

  • Periodic investor reporting
  • Independent valuation policy
  • External audit
  • Fund administration and compliance
  • [Service providers to be appointed and confirmed]

Note on performance

This website does not present past performance, funds under management, realised returns or a track record. Where such information exists and has been approved for disclosure, it will be provided directly to eligible investors with appropriate qualifications.

Strategy descriptions describe intended investment activity. They do not constitute an offer of a financial product and no return, income or performance outcome is implied or guaranteed.

Next step

Speak with our team.

We are building relationships with family offices, wholesale investors, institutional capital, lenders and hospitality operators. Enquiries are treated confidentially.

Investor EnquiryOperator Partnerships

General enquiries: enquiries@neighbourhood.capital

Australian Hospitality · Private Markets · Real Assets