Barwon Disability Accommodation Fund Acquires 20 SDA Apartments

Barwon Investment Partners’ Disability Accommodation Fund (‘BDAF’ or ‘the Fund’) has expanded its portfolio of Specialist Disability Accommodation (SDA).

The strategic acquisition includes 20 SDA apartments for eligible NDIS participants and two Overnight Assistance (OOA) apartments for carers at Macquarie Park, in Sydney’s northwest. It highlights BDAF’s dedication to improving access to disability accommodation in high-demand, well-connected areas.

The properties were acquired for a total purchase price of $14.8 million, increasing the Fund’s portfolio value to $83.3 million, and expanding its SDA properties under management to 117 across Australia.

Joss Engebretsen, Portfolio Manager of BDAF said, “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.

“There is clear demand for contemporary, purpose-built accommodation in existing areas

closely serviced by neighbourhood amenities, care providers, and key infrastructure. 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.”

The mid-town precinct features market, affordable and social housing options alongside Barwon’s SDA offering, serviced by local retailers, open spaces, a new community centre, a new school, childcare facilities and a commercial pool and gym, all connected through a network of footpaths.

Prior to settlement, pre-leasing activities were strong, with nine residents interested in moving in, and one already calling MAC residences home. The properties are expected to produce an investor distribution yield of over 7 per cent when fully occupied, being accretive to the Fund’s distribution, forecast to be achieved over the next 12 months.

The strategic location of these residences is a key factor in the acquisition. Macquarie Park is a developing precinct with significant infrastructure, including Macquarie University, the Metro, and a major shopping centre. This prime location ensures that residents will benefit from a vibrant community and easy access to essential services.

Vera Living, a leading SDA provider, has highlighted the strong demand for modern, purpose- designed and built housing in the area. Vera Living will play a crucial role in transitioning participants from outdated group homes to these new residences, meeting the need for high- quality and accessible housing for people with disabilities.

The Fund delivered a 9.03 per cent total return over the FY24, and 8.94% in the 24-months to 31 July 2024, distributing cash distributions quarterly, and continues to further invest in a diversified portfolio of SDA properties across Australia.

The acquisition reinforces BDAF’s commitment to delivering high-quality housing solutions for individuals with severe functional impairments and high support needs.

The Fund is currently open for investment being accessible directly or via the Netwealth platform.