Skyring Assisted Living Accommodation Fund | Income Fund
Skyring is proud to present its latest wholesale investment offering, the Skyring Assisted Living Accommodation Fund.
At Skyring we believe in socially conscious and responsible investments and this Fund is designed to acquire properties and develop housing in the Specialist Disability Accommodation (SDA) sector for persons with complex support needs.
The Fund, which was recently launched on the 1 July 2021 is seeking to raise up to $50 million in order to be a major participant in the evolving specialist disability accommodation sector.
SO WHAT IS THE OFFER ALL ABOUT?
The Fund will acquire interests in properties in the Specialist Disability Accommodation (SDA) sector. The SDA sector comprises the provision of specialist housing to persons with complex support needs.
In 2016, legislation was introduced under the National Disability Insurance Scheme (NDIS) to provide government funding and encourage private investment into the SDA sector.
The legislation was aimed at dramatically improving the quality and fit for purpose of housing in the sector, with a focus on moving from large, old institutional homes to smaller, purpose-built homes and apartments integrated into the community.
The Fund will acquire a portfolio of residential properties that qualify for funding under the SDA scheme. These could include standalone group share houses, small townhouse complexes, and selected apartments within an apartment complex.
The Fund will partner with NDIS providers who have existing relationships with people who are participants for the SDA scheme in order to secure tenants for the properties. Skyring has currently identified a pipeline of current opportunities to be acquired.
Target investments will generally have the following characteristics:
> As an investor, this Fund has a maximum maturity date of 4 years
> The minimum investment amount per investor is $100,000
> Properties will be registered as SDA dwellings under the NDIS
> Generate income through rent (on completion if a development)
> Target Yields of between 9.0%pa^ to 11.0%pa^
> Distributions paid monthly
> Defensive characteristics with income backed by Government funding
> High-quality partners and NDIS service providers
The target distribution rate for investors from years 1 to 3 is a minimum of 9%pa^. In year 4, investors will receive 9%pa^ plus the profit share on the sale of the developed assets.
It is important to note that the Fund is expected to be illiquid throughout the majority of the investment term so you will need to make sure that you are comfortable with a 4 year time horizon.
WHO CAN INVEST?
To participate you need to qualify as being a “wholesale or sophisticated” investor under Section 761G of the Corporations Act, namely:
> An investor who invests $500,000 in the Fund
> An investor who meets the $2.5 million net asset test, or $250,000 per year gross income for past two financial years test, and provides an accountants certificate, or
> A professional investor
Before making an investment decision in respect of the Skyring Assisted Living Accommodation Fund, you should read a copy of the Information Memorandum (IM) and consider whether an investment is appropriate having regard to these matters.
Before making an investment decision in respect of the Skyring Assisted Living Accommodation Fund, you should obtain and read a copy of the Information Memorandum (IM) and consider whether an investment is appropriate having regard to these matters.
^Returns on our investments are variable and paid monthly. Past performance is not a reliable indicator of future performance. The rates of return from the Funds are not guaranteed, and may be lower than expected. Investors risk losing some or all of their principal investment.
An investment in the Funds are not a bank deposit.
Refer to IM for further details. Visit our website at www.skyring.com.au for further information.