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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 December 2023

ReturnsIncome ReturnCapital ReturnTotal Return
12 months5.55%10.61%16.16%
ITD p.a.3.37%4.84%8.21%

Unit Price

CUM Unit PriceInception Date
$1.08481 August 2021
Disclaimer

Investment Team

Tom Patrick

Tom Patrick

Head of Healthcare Property, Partner

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Tom Patrick

Tom Patrick

Head of Healthcare Property, Partner

Read More

Key Downloads

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.

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