This article is from the Australian Property Journal archive
BARWON Investment Partners’ Disability Accommodation Fund has acquired 20 specialist disability accommodation (SDA) apartments for $14.8 million.
The purchase includes 20 SDA apartments for eligible NDIS participants and two overnight assistance (OOA) apartments for carers in Sydney’s northwest suburb of Macquarie Park.
The new assets expand the fund’s portfolio value to $83.3 million and its SDA properties under management to 117 across Australia.
“This acquisition aligns perfectly with our strategic focus of investing in an established area where participants want to live and where there are services to support them,” said Joss Engebretsen, portfolio manager at Barwon Investment Partners’ Disability Accommodation Fund (BDAF).
The SDA offering sits within a mid-town precinct that also includes market, affordable and social housing options and is serviced by local retailers, open spaces, a new community centre, a new school, childcare facilities and a commercial pool and gym.
“There is clear demand for contemporary, purpose-built accommodation in existing areas closely serviced by neighbourhood amenities, care providers, and key infrastructure,” added Engebretsen.
“Our goal is to provide not just housing, but an integrated living experience that supports residents’ needs and enhances their quality of life while generating good returns for our investors.”
Leading SDA provider Vera Living will manage the offering.
Demand is high in the SDA market, which has slowed since 2021 as community housing providers are hesitant to provide accommodation due to financial risks.
BDAF anticipates an investor distribution yield of over 7% when fully occupied and accretive to the fund’s distribution, which is forecast to be achieved over the next 12 months.
The Fund delivered a 9.03% total return over the FY24 and 8.94% in the 24-months to 31 July 2024, distributing cash distributions quarterly.
