Sydney, Nov 7: Blackoak Capital has launched the Lumenate SDA Investment Trust II, a $100 million fund dedicated to constructing Specialist Disability Accommodation (SDA) for National Disability Insurance Scheme (NDIS) participants across Australia.
This initiative addresses the country’s severe shortage of suitable housing for vulnerable individuals with disabilities, with approximately 15,000 Australians still waiting for accessible accommodation despite having approved NDIS funding.
Initially focusing on Western Australia, the Fund aims to develop 50 projects providing purpose-built, high-quality housing for 220 NDIS participants.
David Zimmermann, Blackoak Capital’s CEO, noted that many NDIS participants currently face long wait times and often live in unsuitable facilities like aged care homes or hospitals.
The Fund, managed with the support of Cushman & Wakefield as capital advisor, aims to fill this gap by building single-story houses and villas that support independent living.
Zimmermann highlighted the long-term bipartisan support for NDIS funding, which he believes ensures a sustainable demand for SDA housing.
“We also know the Federal Government is committed to improving the NDIS and recognises that well-constructed SDA is ultimately a cost saver because it reduces dependency on support services,” Zimmermann stated.
The Fund is structured to yield a projected equity Internal Rate of Return (IRR) of over 13 per cent over ten years, with quarterly distributions of 10 per cent per annum, aiming for minimal third-party debt.
The investment offers core-plus returns, with government-backed income and inflation-indexed cash flows. David Curtis, Co-Head Alternatives at Cushman & Wakefield, explained that SDA investments align with the demand for essential service-based assets in the Australian real estate landscape.
With an emphasis on well-planned, quality SDA projects, Cushman & Wakefield’s Alan Herrman stressed the importance of carefully vetted investments, distinguishing reputable SDA developments from those with overly ambitious return promises. “From an investor perspective, not all SDA projects are created equal,” Herrman said, underscoring the need for in-depth data analysis and partnerships with qualified developers.
The Lumenate SDA Investment Trust II presents an opportunity for investors to support Australia’s disability community while benefiting from a reliable, socially responsible investment.
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