Tom Patrick
Head of Healthcare Property, Partner
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Fund Overview
The Barwon Disability Accommodation Fund is an open-ended fund focused on acquiring and developing high quality Specialist Disability Accommodation (SDA) across Australia.
SDA is a range of specialist housing designed for people with extreme functional impairment or very high support needs. In 2016, legislation was introduced under the National Disability Insurance Scheme (NDIS) to provide government funding and encourage private investment to develop, own, and operate this specialist form of residential accommodation. Designed to cater to the needs of those with extreme functional impairment and high support needs, when an SDA funded participant occupies an SDA property, their rent is paid for by the NDIS.
The Fund provides wholesale investors with an opportunity to earn attractive risk-adjusted returns via a diverse portfolio of development and income-producing enrolled SDA properties. The Fund will own a mix of standalone homes, clusters of townhouses or villas, and selective apartments projects with a focus on locations with high amenity in Australian metropolitan areas and major regional centres.
Investment Strategy
The Fund seeks to provide investors with distributions of 5% – 7% p.a. paid quarterly, with further potential for capital growth,
The Fund will principally acquire existing income producing properties however has the ability to enter into forward purchases or build-to-own development activities in order to secure high-quality projects.
Barwon’s Investment team has a very diligent approach in assessing its pipeline of high-quality off-market opportunities diversified across different geographies, building types and NDIS participant categories. All assets are located in Australia in metropolitan and major regional locations.
The Fund’s pipeline is strong with high quality off-market opportunities spread across different geographies, building types and NDIS participant categories.
All assets are located in Australia in metropolitan and major regional locations
Key Features of the Fund
The gap between the demand and supply of high-quality, well-located and new build fit-for-purpose specialist disability housing creates significant opportunities for appropriate private sector returns
Attractive target yields of 5%-7% p.a.
Income supported by Federal government funding
Long WALEs with inflation-hedged income streams
Low correlation with other property sectors
Socially conscious outcomes - Empower the lives of those living with disabilities by providing and managing accommodation appropriately designed to improve residents quality of life.
Unit Price and Performance
As at 30 September 2024
| Returns | Income Return | Capital Return | Total Return |
|---|---|---|---|
| 12 months | 3.87% | -0.63% | 3.24% |
| ITD p.a. | 3.34% | 2.71% | 6.05% |
Unit Price
| CUM Unit Price | Inception Date |
|---|---|
| $1.0530 | 1 August 2021 |
Disclaimer
Investment Team
Selection of Fund Properties
Arana Hills, QLD
- 4 x SDA apartments designed to High Physical Support (HPS standard)
- Onsite Overnight Assistance accommodation
- Pass-through lease
- Settled: February 2022
- SDA Provider: NDISP
Ryde, NSW
- 10 x SDA apartments designed to High Physical Support (HPS standard)
- Onsite Overnight Assistance accommodation
- Pass-through lease
- Settled: March 2022
- SDA Provider: Access Accommodation
Dandenong, VIC
- 15 x SDA apartments designed to High Physical Support (HPS standard)
- Onsite Overnight Assistance accommodation
- Fully leased
- SDA Provider: Zenitas
- Due for completion July 2023
Barwon is seeking to be at the forefront in clean energy management and development of healthcare real estate assets within Australia, a sector that has traditionally lagged other sectors such as office and retail in regards to emissions reduction strategies and management.
Environmental
Barwon is implementing a range of management and technology initiatives to reduce carbon emissions and to implement more environmentally sustainable operating solutions.
Barwon is actively exploring opportunities to install solar power systems to supplement existing power sources in its larger properties. This aims to reduce fossil fuel power reliance and provide energy savings for our tenants.
Social
The Fund aims to improve the lives of our residents, people with disabilities that mean they have extreme functional impairment or very high support needs, by owning high quality SDA properties that promote a resident’s independence, access to community and dignity. Overall the SDA sector is aiming to house the estimated 28,000 Australians that will require disability accommodation (NDIS SDA Pricing Review, 2023).
Governance
The Fund partners with sophisticated Supported Independent Living (SIL) and SDA providers who are committed to instilling best-practice into their operations and focused on maximising participant outcomes. The Fund also employs good governance across its investing and risk management activities through Barwon’s Investment Committee, Risk and Compliance Comittee, and ESG Committee.
News & Insights
Barwon Investment Partners is pleased to release its latest white paper: Investing in the Specialist Disability Accommodation Sector. The paper offers an in-depth analysis of the Specialist Disability Accommodation market, covering key aspects such as investment characteristics, supply and demand trends, risk and return profiles and future growth prospects. Through this exploration, it aims to equip […]
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“We aim to be considered the ‘safe pair of hands’ when investors look to invest in Specialist Disability Accommodation,” says Barwon’s Joss Engebretsen. Building a fund in an emerging asset class fundamentally relies on getting out from under the desk, understanding how the sector works from the bottom up and building the right relationships according […]
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The Inside Adviser – Staff Writer As Australian healthcare expenditure continues to rise and investors move deeper into the sector, healthcare property is well placed to continue its outperformance of other commercial property sub-sectors. Few investors would be unaware of the woes of the commercial property sector, with office and retail real estate valuations continuing […]
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Tom Patrick, Head of Healthcare Property at Barwon Investment Partners, recently discussed the drivers behind an increasing demand in the healthcare property sector and highlighted a potential for growth due to demographic and technological shift on Ausbiz. Click the link below to watch the full interview Media Enquiries Mekala Shanker Marketing & Communications Manager […]
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We are pleased to release our latest investment White Paper: The Outlook for Healthcare Property. Tom Patrick, Head of Healthcare Property at Barwon Investment Partners, comments, “We view the sector’s strong fundamentals, combined with macro-economic tailwinds, leading to sustained and increased demand for healthcare property over the medium term. “As we enter the next property cycle, […]
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The Barwon Disability Accommodation Fund (Fund) is proud to announce the successful settlement of two properties in Western Australia and Queensland. These settlements are in line with the Fund’s commitment to providing high-quality Specialist Disability Accommodation (SDA) across Australia. With a total investment of approximately $10m, these acquisitions bring the Fund’s portfolio to $82.43m including […]
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Barwon Investment Partners (Barwon) is proud to announce its collaboration with Avive Health to unveil a ground-breaking 63-bed private hospital facility in Brisbane. This facility aims to establish a new benchmark in private mental healthcare, reflecting Barwon’s commitment to transforming healthcare infrastructure. Avive Clinic Brisbane, the result of this collaborative effort, is a visionary project […]
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Barwon Investment Partners (Barwon) is proud to have been a part of the momentous occasion of the Eastwood Private Hospital official sod-turning event, marking the commencement of construction for an innovative healthcare facility. This project, valued at $90 million, is the latest development within the Barwon Institutional Healthcare Property Fund (Fund) stable. The Eastwood Private […]
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Tom Patrick, Head of Healthcare Property at Barwon Investment Partners, and Srimathi Iyenger, Portfolio Manager, sat down together to discuss the Barwon Institutional Healthcare Property Fund’s activity during the June to September 2023 quarter.
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In this video, Tom Patrick, Partner and Head of Healthcare Property, and Joss Engebretsen, Portfolio Manager discuss the Barwon Disability Accommodation Fund’s performance over the September quarter.
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Barwon will be hosting a webinar on Thursday, 21 September at 11am (AEST) on the development and outlook for the Specialist Disability Accommodation (SDA) sector with Joss Engebretsen, Portfolio Manager for the Barwon Disability Accommodation Fund. Joss will be joined by Laila Burnet, National Director – Health Aged Care & Seniors Living at M3 Property, and James Brennan, […]
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Barwon Investment Partners (Barwon), a leading alternative fund manager, is pleased to announce the successful settlement of three new assets totalling $31.25m gross asset value within the Barwon Disability Accommodation Fund’s (Fund) portfolio. All three operating properties were acquired with fixed rent head leases in place and collectively will provide accommodation for 41 individuals with […]
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