Fully Leased Specialist Disability Accommodation portfolio up for sale

A portfolio of seven Specialist Disability Accommodation (SDA) investment properties located in the key growth corridors of Caboolture, Ipswich and Beaudesert in South-East Queensland and the La Trobe Valley in Victoria is being taken to the market by Knight Frank.

Leading healthcare provider Zenitas Healthcare is the tenant for each property under a 10-year, triple net head lease, with a further 10-year option.

The portfolio of 7 modern facilities offers a WALE of 8.22 years and passing income of $1,521,709 per year, with 100% of the outgoings including land tax being recoverable. CPI review mechanisms apply to 5 of the 7 specialised assets with fixed reviews applying to the remainder.

The portfolio is being taken to the market via an Expressions of Interest campaign run by Sam Biggins and Christian Sandstrom of Knight Frank on behalf of the Vendor, experienced Queensland-based SDA developer Robinson Projects.

Bids will be accepted on both a portfolio and individual basis.

Mr Biggins said the 39-bed portfolio offered investors the opportunity for immediate scale in the SDA sector, which was supported by the federal government via the National Disability Insurance Scheme (NDIS).

“There is strong demand for high quality accommodation in the SDA sector, with 4.3 million Australians currently having a disability, including around 500,000 with a permanent or significant disability,” he said.

“This portfolio provides a mix of Fully Accessible, Improved Liveability and High Physical Support classifications, and unlike riskier SDA offerings ensures a secure income stream for investors with significant potential for rental reversion on expiry.

“The assets in this portfolio are underpinned by a strong covenant, with a head lease to Zenitas Healthcare, which provides outstanding, customer-focused health, aged care and disability services to Australians in their own homes and in the community and is backed by Adamantem Capital, one of Australia’s leading Private Equity businesses.

“We expect significant investor interest throughout the campaign, including from local and interstate buyers.”

Mr Sandstrom said the properties were in strategic locations throughout Queensland and Victoria.

“The assets are located in growth areas close to major centres with a significant number of NDIS scheme participants,” he said.

“The Queensland properties are no more than one hour’s drive from Brisbane, while the Victorian properties are located in the major regional centre of the Latrobe Valley, around two hours east of Melbourne.

“These strategic locations will offer value growth potential for the assets moving forward, while returns can also be improved via significant rental reversion.”

The Expressions of Interest campaign will close at 4pm AEST on Thursday, August 22.