Information on the Target

The Barwon Disability Accommodation Fund (the Fund) is pleased to announce the successful acquisition of two properties, located in Western Australia and Queensland. This initiative represents the Fund's ongoing commitment to delivering high-quality Specialist Disability Accommodation (SDA) throughout Australia. With a total investment of approximately $10 million, these new acquisitions elevate the Fund's portfolio value to $82.43 million, which includes additional SDA properties soon to be settled in Macquarie Park, Sydney.

In Cannington, Western Australia, the Fund has executed an off-market transaction valued at $6.25 million. This acquisition features a tailored housing solution comprising ten 2-bedroom apartments, each designed to accommodate individuals with high support needs, supplemented by an Overnight Onsite Assistance unit (OOA). The residences comply with the High Physical Support (HPS) standard set by the NDIS, ensuring optimal living conditions for residents with severe functional impairments. The agreement also includes a favorable 15-year fixed-rent head lease, with rent adjustments indexed to the Consumer Price Index (CPI) and scheduled rent reviews every five years in line with the SDA Price Guide.

Industry Overview in Australia

Australia's disability accommodation industry is recognized as an essential component of the National Disability Insurance Scheme (NDIS). The NDIS aims to foster more inclusive living environments, promoting independence for individuals with disabilities through tailored housing options. This initiative has led to an increasing demand for SDA properties that cater to individuals with varying support needs. Investors are increasingly looking toward this sector due to its relatively stable income potential and alignment with social impact objectives.

The market for Specialist Disability Accommodation is currently expanding across Australia. With government initiatives backing the NDIS and rising awareness about the importance of dignified living conditions for individuals with disabilities, the future of SDA housing looks promising. Properties that meet the required standards not only contribute to individual well-being but also provide competitive returns for investors willing to support this niche market.

Regional areas, particularly in Western Australia and Queensland, are witnessing a surge in investments aimed at developing high-quality SDA properties. A combination of favorable policies, growing tenant demand, and a scarcity of suitable accommodations has positioned these regions as attractive markets for developers and funds focused on disability accommodation.

The Rationale Behind the Deal

The recent acquisitions in Cannington and Cannon Hill align with the Fund's strategy to diversify its portfolio while enhancing service offerings for individuals with disabilities. By selecting properties in well-located and well-tenanted areas, the Fund is not only meeting the immediate housing needs of the NDIS participants but also ensuring long-term financial viability. The focus on high-support accommodation reinforces the Fund's mission to deliver quality living options that promote independence and an improved quality of life for residents.

Furthermore, the inclusion of favorable lease agreements, coupled with annual reviews tied to the CPI, positions the Fund to maximize its income stability and growth potential, which is vital for sustaining its long-term objectives in the disability accommodation sector.

Information About the Investor

The Barwon Disability Accommodation Fund is an open-ended investment fund that specializes in acquiring high-quality SDA properties throughout Australia. The Fund aims to cater to the evolving needs of individuals with disabilities, ensuring they have access to tailored housing solutions that meet their unique support requirements. The Fund’s management remains dedicated to maintaining a diversified portfolio across various design categories, reflecting a commitment to responsive and empathetic service delivery.

Open for investment with structured redemption opportunities available every five years, the Fund is robust and positioned to attract both social impact investors and those seeking reliable returns through strategic exposure to the disability accommodation sector. The team continues to prioritize liquidity for its investors while simultaneously enhancing the quality of life for SDA residents.

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Investing in the Barwon Disability Accommodation Fund presents a compelling opportunity in a growing sector that fulfills both financial and social impact objectives. The recent acquisitions exemplify strategic decisions that enhance the Fund's portfolio and address the pressing needs of individuals with disabilities. This alignment makes the Fund not only a prudent investment choice but also a vehicle for meaningful change within the community.

The acquisitions in Cannington and Cannon Hill are fundamentally sound, with the properties adhering to NDIS standards and the inclusion of long-term leases that promise steady cash flow. Such characteristics are attractive to investors looking for stable income streams, especially given the additional benefits of CPI-linked rent adjustments.

Moreover, as the NDIS continues to evolve and expand, the demand for high-quality SDA properties is likely to rise, benefiting the Fund. Investors should view this acquisition as a positive move toward expanding their portfolios in a market that not only provides financial returns but also supports societal growth.

In conclusion, the Barwon Disability Accommodation Fund has made strategic acquisitions that position it well for future growth. With the potential for continued demand in the SDA space and the financial stability offered by fixed leases, this investment could prove highly beneficial for investors seeking impactful opportunities.

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