Name of fund:
The Australian Unity Specialist Disability Accommodation Fund
The offer/deal available:
SDA is a developing market with only a handful of scaled investment funds operating within it. Like all Australian Unity Funds, the SDA Fund relies upon expert management with best-in-class sector experience to develop and execute strategy to establish the most meaningful SDA projects to best benefit Participants and provide above market returns to investors.
- As at November 2023, the Fund’s total return over the prior 12 months was 11.41%
- The Fund’s forecast internal rate of return (IRR) is 14.3% p.a.
- The Fund has a contracted pipeline of accretive development, turn-key and off the plan SDA projects. Coupled with market leading occupancy, the Fund is well positioned to perform to forecast
Specific investment and benefits:
The Fund only develops and acquires best practice SDA (strictly avoiding housing segregation for people with a disability and mandating that housing and support are separated) each of which are overtly favoured by Government and ensures sustainable long term returns as well as delivering the highest social benefit to Participants.
As a founding director of the SDA sector peak body, the SDA Alliance Ltd, and having regular interactions with the NDIA, Government and Minister, the Australian Unity SDA Fund Manager is able to openly use asymmetric information for the benefit of the Fund and its investors.
The Fund operates nationally and employs varying lease types in order to maximise returns via 40-year Federal Government subsidies subject to annual CPI indexation on a project by project basis. Property is owned across all SDA Building Types and is operated by multiple SDA Providers in order to provide a thoroughly diversified and de-risked portfolio.
As at December 2023 the Fund’s gross asset value was ~$150 million comprising 125 Participant places over 98 properties with a further 156 Participant places across 78 properties in its $75 million contracted pipeline. The Fund is proud to report full occupancy, allowing for a letting up period for new projects, which is attributed to its Participant led strategy (no speculative or developer led property).
The social impact of Australian Unity’s SDA Fund was valued through Australian Unity’s Community and Social Value (CSV) Framework. Partnering with SVA Consulting, and by applying the CSV Framework, SVA Consulting calculated that the Australian Unity SDA Fund created $30.8 million in Community and Social Value in FY2023.
Click here for further details
credit “Picture courtesy of the Australian Unity SDA Fund”.