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 31 October 2023
| Returns | Income Return | Capital Return | Total Return |
|---|---|---|---|
| 12 months | 4.87% | 9.39% | 14.26% |
| ITD p.a. | 3.11% | 4.23% | 7.34% |
Unit Price
| CUM Unit Price | Inception Date |
|---|---|
| $1.0535 | 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 (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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Barwon Investment Partners is pleased to announce the successful acquisition of two premier healthcare assets with a third asset purchase in final due diligence. The acquisitions further solidify Barwon’s position as a leading investor in the healthcare property sector and demonstrate the Fund’s commitment to expanding its portfolio with high-quality, income-generating assets. The Barwon Institutional […]
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Welcome to our latest Healthcare Property Update. Tom Patrick, Head of Healthcare Property, is joined by Portfolio Manager, Sophie Bannerman to discuss the Fund’s performance over the previous quarter as well as the importance of portfolio valuation. Transcript: Tom:Â In 2023, we have seen softening in market capitalisation rates for commercial property as values adjust […]
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Barwon Investment Partners is proud to have the Somerset Specialist Centre nominated as a finalist in the 2023 Property Council of Australia/Rider Levett Bucknall Innovation & Excellence Awards for the Best Public Building Award. Completed in 2020 and located in Kingswood, NSW, the Somerset Specialist Centre is the foundation of a world-class medical ecosystem providing […]
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Barwon Investment Partners (Barwon) is pleased to announce a partnership with Healthscope to develop La Trobe Private Hospital, located within La Trobe University and adjacent to the recently announced $5 billion University City of the Future Plan project at La Trobe’s Bundoora Campus. The hospital will be an integral component of La Trobe University’s planned […]
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Watch Tom Patrick, Head of Healthcare Property, as he discusses Barwon’s perspective on the emerging Specialist Disability Accommodation and Healthcare Property sectors with Marcello Caspani-Muto from CBRE.
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Tom: Hello and welcome to another quarterly update from the Barwon Healthcare Real Estate Team.
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Joss Engebretsen, Portfolio Manager – Specialist Disability Accommodation (SDA), recently sat down with Minh Le of the SDA Housing Podcast to discuss the Barwon Disability Accommodation Fund, investing in the SDA sector, and why SDA is an ‘up and coming’ sector of the property market.
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