The SDA market is expected to quadruple from its current market size of $3.6 billion¹ to some $12 billion at maturity² presenting an enormous national challenge to deliver sufficient SDA for the growing number of Australians with disability.
From a development perspective, the SDA sector faces the challenge of not only bringing new stock to market, but replacing legacy stock based on outdated models of care. The government understands that taxpayers alone cannot be responsible for financing the required developments: private capital must play a significant role in the delivery of necessary infrastructure.
For the right investor, a high-quality SDA investment strategy offers potential for strong returns. Yet not all SDA assets or investment schemes are created equal. This is a complex sector that requires a manager with the right mix of expertise, networks, SDA design ethos, and a long-term focus.
Australian Unity SDA Fund receives Impact Investment Award
At the Australian Impact Investment Awards in April, Australian Unity was named Impact Asset Owner of the Year for its Specialist Disability Accommodation Fund (Fund). The award criteria recognised Australian Unity and the Fund for leading the market with its capital allocation, distinctive investment theme, and significant documented impact.
Australian Unity launched its SDA Fund in 2020 with the support and backing of Australian Unity seed capital and a number of cornerstone investors, including Australian Ethical Investment.
Since then, the Fund under the leadership of Fund Manager Jacob Edwards with team members Aston Mayer and Sarah Pass have been building out a portfolio of next generation SDA that maximises people’s independence and quality of life.
The Fund has established a portfolio of around 150 SDA dwellings, which underpins current performance and provides a strong platform to grow future acquisitions and developments.
SDA Fund Total Returns
Important information: Total Return is calculated after fees and expenses and assumes the reinvestment of distributions. Past performance is not a reliable indicator of future performance. Performance has been calculated in accordance with FSC Standard No. 6. Inception date for performance calculations is 31 March 2020, Fund inception was 3 April 2020.
National challenge: replacing poorly designed old stock
Specialist Disability Accommodation is a relatively new concept in itself. Until recently, adult Australians living with disability either lived in nursing home facilities designed for the elderly, in large group homes that compromise quality of life, or with elderly parents who are incapable of looking after them. Unfortunately, many people live in substandard settings today as a result of a shortage in quality SDA.
The latest research tells us that the existing supply of nursing home facilities and large group homes are unsuitable for NDIS participants as they do not provide them with quality of life, dignity and independence.²
Next generation SDA housing must be developed to maximise people’s independence and quality of life. This means not developing large congregations of dwellings or standalone SDA apartment complexes. Fit for purpose SDA must be built to the highest design standards, support interaction with the community and be centrally located with easy access to amenities such as shopping centres, transport, restaurants, parks and cafes, leisure centres and entertainment.
Rapidly growing demand
The National Disability Insurance Agency (NDIA) —is responsible for the stewardship of a market of National Disability Insurance Scheme (NDIS) providers who deliver SDA to eligible participants. It projects that SDA demand will increase from about 22,900 NDIS participants in June 2022 to about 36,700 in June 2042. This represents an average growth rate of 2.4% per annum, exceeding Australia’s population growth of 1.2% per annum.³
For further information about the Fund, please contact 1800 649 033 or visit australianunity.com.au/wealth/sdaf
For more information about how Australian Unity measures its impact using its Community and Social Value Framework visit australianunity.com.au/about-us/our-impact.
Sources
¹ Quarterly Report to Disability Ministers Q3 25-25. https://www.ndis.gov.au/media/7684/download?attachment
² Better, safer, more sustainable: How to reform NDIS housing and support. Grattan Institute. https://grattan.edu.au/wp-content/uploads/2024/09/Better-safer-more-sustainable-Grattan-Institute-Report.pdf
³ SDA Demand Projections Report: https://www.ndis.gov.au/news/9563-sda-demand-projections-report-released
Important information
Units in the Australian Unity Specialist Disability Accommodation Fund are issued by Australian Unity Funds Management Limited ABN 60 071 497 115, AFS Licence No 234454. The information provided here is general information only and current at the time of publication. The information is not intended to be relied upon as financial product advice and does not take into account the objectives, financial situation or needs of any particular investor. In deciding whether to acquire, hold or dispose of the product you should obtain a copy of the Information Memorandum and consider whether the product is appropriate to your particular circumstances and objectives. A copy of the relevant Information Memorandum is available by calling our Investor Services team on 1300 997 774. Prior to investing in any financial product, an investor should seek professional financial and taxation advice. Investment decisions should not be made upon the basis of its past performance or distribution rate since each of these can vary. Forecasts are subject to internal and external risks and uncertainties that may have material effect on future business. Actual results may differ materially from any future results or performance expressed, predicted, or implied by the statements contained in this article. As such, undue reliance should not be placed on any forward-looking statement. Investment is only available to investors who are ‘wholesale clients’ for the purposes of section 761G of the Corporations Act. This information is intended for recipients in Australia only. Past performance is not a reliable indicator of future performance.