F1 Arcade gives investors exposure to the boom in F1's fanbase and competitive socialising through a premium, simulator-led racing venue format. It targets high-margin, repeat group spend in flagship locations, aiming to build a scalable national network off a proven global model.
F1 Arcade
F1A
Lead Manager
Contact - Kirwan Mactaggart
0448 237 054
kirwan@liquidity.com.au
Minimum Investment
A$25,000
Offer Details
Issue Price (Per Note)
A$25,000.000
Offer Size
A$4,000,000
Notes Available
160
Australia's competitive socialising market is booming, but no one has brought a globally proven F1 racing experience to the Australian market.
For a limited time, Racing Entertainment Pty Ltd ("RE") a Nightowl Entertainment company, are offering 160 Loan Notes exclusively to Sophisticated Investors.
RE has signed an exclusive development deal with F1 Arcade International to roll out 5 venues in Australia, with the flagship Crown Melbourne venue to be operational in early 2027.
Investor Deck
Company Note Terms
Note Terms
Annual Return
12% - Interest only paid monthly
Bonus Interest
+2% - Triggered per financial year if venue EBITDA exceeds $3m
Term
5 years
Minimum Investment
$25,000 per Investor
Maximum Raise
$4,000,000
Minimum Raise
$2,000,000
Company note are unsecured subordinated debt instruments issued directly by Racing Entertainment Pty Ltd (ACN 676 480 710) to wholesale and sophisticated investors. The notes rank above equity and below senior debt.
Notes include Raving Fan Perks.
Business Overview
F1 Arcade is Racing Entertainment’s flagship F1 racing hospitality concept in Australia, combining officially licensed F1 simulators with premium food, beverage and event‑led socialising. It sits squarely in the fast‑growing “competitive socialising” segment, where activity‑led venues outperform traditional hospitality by making the experience itself the product. Backed by Formula 1 and Liberty Media globally, the F1 Arcade brand has scaled rapidly across the UK and US, demonstrating strong demand for immersive, high‑spend group experiences in major urban and tourism markets.
Under an exclusive Australian development agreement, Racing Entertainment holds the rights to develop five F1 Arcade venues nationally by 2030, with Crown Melbourne as the flagship. The initial venue is a 1,500 sqm, design‑led space within Crown Melbourne featuring 69 state‑of‑the‑art simulators, vibrant bar and dining zones, and flexible layouts for corporate and private events. The offer funds the build‑out and launch of this first site, which is targeted to open in late February 2027 following handover in July 2026, with additional venues in Perth, Sydney, Brisbane and the Gold Coast scoped under the development agreement.
Investor Benefits
Perks
Formation Lap
Podium
Pole Position
Race Director
Paddock Club
Noteholder Investment
$25,000
$50,000
$100,000
$175,000
$250,000
Credit at any NightOwl Venue
$1,000
$2,000
$5,000
$8,750
$12,500
Merchandise Pack Value
Viewer Level
Viewer Level
Viewer Level
Driver Level
Driver Level
F1 Afterparty Weekend Invites
2
4
8
15
25
F1 Race Watch Party Invites
2
4
8
15
25
Investor Dinner Invites
2
2
2
2
2
Private Sim Session – Attendees
2 pax x 1 hour
5 pax x 2 hours
10 pax x 2 hours
20 pax x 2 hours
30 pax x 3 hours
Maximum Value of Benefits
$3,500
$7,000
$14,000
$25,000
$40,000
Event Perks are provided on an annual basis, but are not cumulative; Subject to accepting invitations or making bookings in advance.
Capital Structure
Total CapEx
$16m
Per-venue fit-out including equipment and working capital
Senior Debt
$4m
Bank debt at 7% p.a. IO Year 1, P&I over 5 years
Equipment Finance
$4m
7% p.a. annuity with 30% balloon
Company Notes
$4m
Grid Entry raise at 12% p.a.* Interest only paid monthly
Equity
$4m
NightOwl co-investment into the venue
*If the Company Notes raise does not reach $4M, the shortfall will be covered by increased senior debt and/or NightOwl equity.
Market Tailwinds
Competitive Socialising Boom
- 800+ venues in the UK alone, up 58% since 2018. Forecast to reach 1,100 sites by 2030
- 29% of UK adults visited a competitive socialising venue in the past 12 months.
- Australia is the fastest-growing market for location-based entertainment globally, and no comparable F1 racing concept exists in the region.
F1 Arcade: Global Success
- US$130M Global Funding Raised
- 8 Venues Now Operating
- £31.9M Annual Revenue (GBP)
32.3% CAGR
AU Location-Based Entertainment US$102.8M (2024) → US$562.3M (2030)
US$1.23T by 2034
Global Immersive Entertainment Market US$146.6B (2025), CAGR 26.7%
Execution Plan
Date
Milestone
First
Feb 2027 - First flagship venue - Melbourne
Second
Perth
Third
Sydney
Fourth
Brisbane
Fifth
Gold Coast
Who is NightOwl?
NightOwl was established in Perth in 2008, has a team of over 600 people and 12 venues Australia wide.
3 Global Brands
- Flight Club - Operating
- Dave & Busters - Launching May 2026
- F1 Arcade - Raising Capital
Other Venues
- Breakwater Tavern
- The Lookout
- Print Hall
- Magnet House
- Amplifier Bar
- Edison Bar
NightOwl is an experienced hospitality operator with 18+ years running 10+ Perth venues, supported by centralised systems, real-time P&L tracking, and in-house training and booking capabilities. As Red Engine’s exclusive Australian partner for Flight Club, it has successfully launched four venues and is recognised as a key growth partner. Its scalable platform and multi-brand strategy across Flight Club, Dave & Buster’s, and F1 Arcade enable efficient expansion while diversifying customer segments and reducing single-concept risk.
Board & Management
David Heaton
Founder and CEO
David Heaton is the Founder and CEO of NightOwl Entertainment, a leading hospitality and entertainment group based in Perth. Over nearly two decades, David has built and operated many of Western Australia’s most recognisable nightlife and social entertainment destinations, including Flight Club, Metro’s Freo, Magnet House, Amplifier, Edison Bar, The Lookout, The Breakwater, Loop, Print Hall and rooftop Bob’s Bar, with flagship new concepts such as Dave & Buster’s Clarkson further expanding the group’s footprint.
A seasoned entrepreneur, David scaled and sold a successful mobile phone retail business before turning his focus to creating high-energy venues that blend great drinks, music and immersive experiences. Under his leadership, NightOwl has grown into a multi-venue portfolio with national expansion plans, and David has been recognised as a Legend of Hospitality by the Australian Hotels Association for his contribution to the industry. Passionate about growth, leadership and community, he is committed to delivering memorable nights out while empowering the teams who bring Nightowl’s venues to life.
Jamie Rhodes
COO
Jamie Rhodes is the Chief Operating Officer of NightOwl, overseeing day-to-day operations across the group’s portfolio of venues and experiences in Perth and beyond. With past leadership and operational roles at Marston Hospitality Services and The Cornerstone Alehouse in Western Australia, Jamie brings deep hands-on experience in high-volume, guest-focused venues to NightOwl’s flagship destinations, including Flight Club, Metro’s Freo, Magnet House, Amplifier, Edison Bar, The Lookout, The Breakwater, Loop, Print Hall and Bob’s Bar, as well as new concepts such as Dave & Buster’s Clarkson.
Specializing in business strategy, project management and the expansion of immersive social hospitality venues, Jamie leads venue management, rostering, compliance and performance, ensuring teams have the systems, support and culture they need to deliver consistently outstanding nights out. Working closely with Founder and CEO David Heaton, Jamie focuses on building resilient, scalable operations and mentoring emerging leaders as NightOwl continues to grow its footprint.
FAQ's
What happens to my funds once I subscribe?
Held in escrow by the Lead Manager until construction commences. If construction does not start by 30 September 2026, your funds are returned and the Notes cancelled.
How is interest paid?
12% p.a. paid monthly into your nominated account. A 2% p.a. bonus is triggered per financial year if venue EBITDA exceeds $3M.
What is the term?
5 years from construction commencement. Interest only during the term; principal repaid at maturity.
Is there a minimum raise?
$2M minimum, $4M target. If the minimum is not reached, the Issuer may extend the Offer, proceed with a revised scope, or return all funds to Noteholders.
Where do the Notes sit in the capital structure?
Subordinated to senior debt but ranking above NightOwl's equity. NightOwl co-invests $4M alongside Noteholders.
Can I transfer my Notes?
Yes. Notes are transferable to other wholesale or sophisticated investors, subject to the transfer procedures in the Note terms.
Disclaimer
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