A portfolio of almost 100 specialist disability accommodation properties across south-east Queensland’s growth corridors is expected to fetch $125 million.
It is being taken to market as an off-the-plan opportunity via a forward purchase agreement, according to Majordomo’s Adam Hammond.
The portfolio comprises between eight and 22 high physical support apartments at each project across six locations, one which is 250m from Kings Beach on the Sunshine Coast, and another 600m from the Gold Coast’s Broadwater.
Hammond said bids for both the portfolio and on an individual basis would be considered.
He said the portfolio offered an opportunity to acquire “immediate scale in the SDA sector”, which was supported by the federal government.
“Demand is particularly strong for high physical support assets where a second bedroom allows a carer to be on-call throughout the night,” Hammond said.
“In Northern Europe, where I lived for 10 years, SDA is incredibly well-executed. Australian SDA though has not typically seen the same European quality of enure-blind design principles that we now associate with modern social and affordable housing, student accommodation, and build-to-rent asset classes.
“It is time for that to change.”
Hammond said SDA development had not kept pace with the rapid growth of south-east Queensland’s growth corridors.
“High-quality SDA assets are currently fetching capitalisation rates in the mid-7 per cent to mid-8 per cent range underpinned by federal government backing and inflation-indexed rental growth,” Hammond said.
“We expect significant investor interest from the various institutional SDA funds, self-managed superannuation funds, private investors and obviously owner-occupiers.”
The expressions of interest campaign closes on November 29, 2024.
