Melbourne, Australia – 15 July 2025 – The Deltine High Yield Motel Fund is pleased to announce the successful acquisition of its inaugural asset, the New Crossing Place Motel & Apartments, a high-performing regional accommodation property located in Seymour, Victoria. The acquisition marks a significant milestone in the Fund’s strategic rollout, targeting high-yielding regional and suburban motels across Australia.
Acquired for $7.5 million on a freehold going concern basis, the New Crossing Place Motel delivers a strong purchase yield of 11.3% and aligns with the Fund’s goal of achieving a total pre-tax return of over 20% per annum, including a targeted 10% p.a. income distribution to investors.
Strategically positioned 1.5 hours north of Melbourne just off the Hume Highway, the 26-room property benefits from a diverse, repeat customer base including government, defence, and regional corporate travellers. With the busy Puckapunyal army base just 9 mins drive away and the Goulburn Valley at its doorstep, the property has demonstrated resilient earnings and high occupancy for many years.
“The New Crossing Place Motel exemplifies the type of asset we are targeting — prime, established, resilient motels with upside potential in regional centres with economic diversity,” said David Toomey, CEO of Deltine. “With a track record of consistent profitability and a strong repeat customer base, this acquisition is a perfect cornerstone for the portfolio we’re building.”
The motel has undergone significant recent capital upgrades, including new apartment additions and roof refurbishments. It also includes a meeting room, pool, managers residence and a large 9,355 sqm block with expansion potential through several adjacent vacant blocks.
Deltine plans to implement a 100-day operational improvement program, aligned with its broader buy-and-build strategy, aimed at delivering both revenue growth and efficiency gains. The Fund’s long-term approach includes rebranding acquired assets into a unified, trusted chain, supported by centralised management, technology innovation, system alignment and procurement systems.
The Australian regional motel sector remains a highly fragmented market valued at $2.8 billion annually, offering compelling consolidation opportunities. Decreasing interest rates, rising construction costs, and limited new supply continue to create favourable acquisition conditions.
Deltine’s Fund structure provides 100% equity ownership of combined motel land, buildings and operations, with senior bank debt used conservatively at a targeted Loan to Value Ratio (LVR) of 45%. The Fund is open to wholesale investors only and is governed by an independent trustee ensuring robust oversight and compliance.
“Our investors seek high-yield, low-risk alternatives, and the Deltine Fund delivers just that by combining real asset backing with strong operational cashflows,” added Toomey.
About the Deltine High Yield Motel Fund
The Deltine High Yield Motel Fund is a commercial property investment vehicle focused on acquiring and consolidating high-yield motels across Australia and New Zealand. By consolidating a fragmented sector, the Fund aims to deliver a diversified portfolio generating superior income and capital growth through operational improvements, economies of scale, technology upgrades and long-term strategic exit planning.
