Pub fund to test thirst for shares Hotel Property Investments, formerly Redcape Property Services, will list on the ASX in December at an initial value of up $285 million. The group derives close to 95 per cent of its income from Coles-run outlets and will look to source other assets once listed. Analysts said it would be similar to the ALE Property Group, which owns a large amount of pubs leased to Woolworths. The joint advisors, Goldman Sachs and JPMorgan will lodge the prospectus on Thursday, November 21, with a listing date of December 12. JPMorgan analysts valued HPI above $500 million, of which half will come from the float, and said the company should come to market with a 7.8 per cent distribution yield. It reckons HPI investors could expect a 12 per cent internal rate of return. The pub float is the first in the sector for at least five years after the now-defunct ING Real Estate Entertainment Fund, which changed its name to Lantern Hotel Group last year. It also comes two months before the planned float of John Singelton/Carnegie-backed Australian Pub Fund. Founded and run by the Riversdale Group, APF, is tipped to be valued at about $250 million, with its portfolio of pubs that includes the Bristol Arms in Sydney. APF has been set up by MH Carnegie & Co., who will manage the investments. Founded in 2011 by Mark Carnegie, M.H. Carnegie & Co. is a Sydney-based venture capital and private equity firm that invests across venture, growth capital and operating property-backed investments. Daily operational management of all new and existing hotels will be undertaken by the chief executive of the Riversdale Group, Paddy Coughlan and the chief operating officer of the Riversdale Group, Rodney (Ned) Kelly, both who are also major investors. These hotels include Kinselas, Peakhurst Inn, Unity Hall, the Bellevue, the Toxteth, The Vic at Enmore, the Marlborough, the Como in Sydney and now the Elephant Arms, in Brisbane.