Fund Overview
The Barwon Disability Accommodation Fund, launched in August 2021, is an open-ended fund for wholesale investors seeking returns from properties in the Specialist Disability Accommodation (SDA) sector in Australia.
The Fund provides investors with an opportunity to earn attractive risk-adjusted returns via a portfolio of development and income-producing properties in the SDA sector such as standalone group share houses, small townhouse complexes, and selected apartments within an apartment complex with a focus on Australian metropolitan and regional areas.
The SDA sector comprises the provision of specialist housing to persons with complex support needs. In 2016, legislation was introduced under the National Disability Insurance Scheme (NDIS) to provide government funding and encourage private investment into the SDA sector.
Key features of Barwon Disability Accommodation Fund
Industry Demand Drivers - Gap between the demand and supply of specialist disability housing has created significant opportunities for private sector involvement
- Advances in care procedures and technology driving demand for new and specialised purpose-built homes integrated into the community
- Investment with positive socially conscious outcomes
- Commonwealth Government funding helps underwrite growth and tenant credit quality
Attractive Yield - Properties typically offer long leases with CPI+ reviews: inflation-hedged income streams
- Targeting annual distributions of 5 – 7% paid quarterly (following establishment period)
Favourable Risk Profile - Leases typically 5+ years with fixed rental growth
- SDA participants loyal to support facilities/personnel they know
- The NDIS estimates that more than $5 billion in capital will need to be invested into SDA over the next five years
- Rent payable by the NDIS
Returns - The SDA sector provides Investors with the opportunity to secure attractive recurring income yields, with stable growth prospects and defensive characteristics that could protect returns in difficult economic conditions
- Low correlation with other property sectors
- The rent payable by the NDIS for the individual tenant is determined by the SDA legislation and has been set to be attractive to private capital providers
Fund Facts
| Fund Type | Unlisted, unregistered, open-ended unit trust |
| Inception | August 2021 |
| Investors | Wholesale clients as defined under Section 761G of the Corporations Act |
| Investments | Development and income-producing properties in the Specialist Disability Accommodation sector |
| Borrowing | The Fund will borrow to fund acquisitions and capital expenditure. Target LVR of between 35% to 45% |
| Unit Pricing | Monthly |
| Redemptions | Redemption window offered every 5 years. Investors can redeem some or all of their units. Fund must satisfy all redemption requests within a 2 year window or terminate |
| Distributions | Quarterly although distributions may vary given the Fund is likely to invest into developments that do not initially produce income |
| Fund Opening | The Fund opens periodically for investors when new property investments are secured. If you care to register your interest for investment, please contact us |
| APIR Code | BAR5842AU |