Newly constructed 100% occupied SDA investment in Newcastle with secure 10-year lease offered for sale

Newcastle, Australia – A purpose-built Specialist Disability Accommodation (SDA) investment in Newcastle's western growth corridor has been brought to market, offering investors a secure long-term income stream backed by an established NDIS provider.

The property at 3 Longworth Avenue in Wallsend is being offered for sale via Public Auction by Knight Frank agents Brent Sinclair and Clem Stack.

Situated on a consolidated 961sq m landholding, the property comprises six purpose-built SDA Villas incorporating a mix of 4 x High Physical Support, 1 x Improved Liveability and 1 x On-site Overnight Assistance (OOA) accommodation.

Fully leased to established NDIS provider 4u Care, the asset generates a net income of $422,300 per annum plus GST under a secure 10-year head lease expiring in November 2033, with a further 10-year option extending through to 2043.

Fully occupied at the time of sale, investors also benefit from a 7.3 WALE, fixed annual rental increases of 3 per cent and a net lease structure under which standard outgoings are recoverable from the tenant.

Located approximately seven minutes from John Hunter Hospital and 15 minutes from Newcastle CBD, the asset is positioned within one of New South Wales' most important regional centres and provides exposure to the growing NDIS and social infrastructure sectors.

Mr Sinclair said the offering represented a rare opportunity to secure a passive investment underpinned by long-term income security and strong sector fundamentals.

“Purpose-built SDA investments of this quality and scale are rarely offered to the market in Newcastle, particularly those supported by a secure long-term head lease and an established operator covenant,” he said.

“The property delivers an attractive income stream from day one, with built-in annual rental growth through fixed reviews and the security of a long-term lease structure. These attributes are expected to resonate strongly with private investors, family offices and groups seeking defensive investments with reliable cash flow.”

Mr Sinclair said the property's strategic location near major healthcare infrastructure further strengthened its long-term investment appeal.

“John Hunter Hospital is one of the largest healthcare facilities in regional Australia, and the property's proximity to such significant infrastructure supports the ongoing need for specialised accommodation and care services in the region.”

Mr Stack said the asset provided investors with exposure to a specialist sector benefiting from strong underlying demand drivers and ongoing government support.

“Specialist Disability Accommodation continues to attract considerable investor interest as awareness of the sector and its fundamentals grows, including its structural undersupply relative to demand,” he said.

“With more than 15,000 Australians currently living in SDA accommodation and NDIS expenditure continuing to increase, high-quality SDA assets such as 3 Longworth Avenue provide defensive qualities and long-term growth potential.

“For this property, the combination of a modern purpose-built facility, established tenancy profile and long-term lease certainty provides a compelling investment proposition.”

The Public Auction for the will be held at 11am (AEST) on Thursday, September 17 at the Knight Frank Newcastle office at Level 2, 168 Parry Street, Newcastle West.

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For further information, please contact:
Vanessa De Groot – Marketing & Communications, Knight Frank
Vanessa.degroot@au.knightfrank.com +61 410 460211

Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, the Knight Frank network has 600+ offices across more than 50 territories and more than 20,000 people. The Group advises clients ranging from individual owners and buyers to major developers, investors, and corporate tenants. For further information about the Firm, please visit www.knightfrank.com.