Lumenate SDA Investment Trust II

The fund’s objective is to contribute towards a much needed supply of Specialist Disability Accommodation for NDIS participants

Watch the video below to learn more about Lumen Living's SDA housing.

https://blackoakcapital.com.au/wp-content/uploads/2023/10/Blackoak-Capital-SDA-Lumenate-II-Fund-Raise-Short-Promo-Final.mp4

About the Fund

Blackoak Capital is seeking to raise $100 million of equity for its second Specialist Disability Accommodation (SDA) Fund (Blackoak Capital’s seventh fund)

The strategic investment objective is to build a diversified investment portfolio of single storey houses and villas for people eligible for funding via the National Disability Insurance Scheme (NDIS) for SDA, a Commonwealth Government funded scheme. The current demand for high-quality housing significantly exceeds supply, especially in Western Australia. Using our experience in the sector we aim to build our portfolio to meet that demand.

SDA is specialist residential accommodation designed to create a physical environment to house people with high support needs and access requirements registered with the National Disability Insurance Scheme (NDIS) in Australia.

The Fund will target an average income distribution of c. 10% per annum together with long-term capital growth. Cash distributions will commence after construction and successful leasing of the properties.

Fund Key Metrics

Target Raise

A$100 million

Target Returns

12.5%+ pa IRR

Target Leverage

20% - 25% LVR

investment Term

10 Years

Eligible investors

Wholesale Clients

Minimum APplication

A$250,000

Lumen Living - Specialised SDA developer

Blackoak Capital Ventures established Lumen Living Pty Ltd (“Lumen Living”) in January 2021 as a provider of specialist development, asset management and investment management services for SDA properties and projects.

With the purpose of lighting the way for a better SDA experience, the team at Lumen Living have worked in the sector since 2019, and are delivering 15 projects for its first fund creating 12 houses and 30 villas which will provide homes for 61 participants. This gives us a detailed understanding of what the second fund portfolio could look like and how we’ll deliver it.

LUMEN LIVING WEBSITE

Why invest in the Fund?

Niche Residential Sector

Tenants Secured by Commonwealth Government Funding

Forecast distributions average c. 10% pa, significantly above non-specialist residential yields.
Total national SDA rent expenditure is forecast to grow from less than $300m in FY 22 to over $1.5bn during the life of the Fund.

Major Government Policy Change in Funding has Created Market Disruption / Opportunity

Funding now flows directly to participants who decide where to live.
Change driven by Government recognition of undersupply and inappropriate existing accommodation.
Government strategy is to incentivise private capital to meet the need for housing.

Purpose Built Specialist Housing

High-quality housing designed for people with extreme functional impairment or very high support needs.
Utilising leading automation and technology to attract tenants.

Blackoak’s USP

Experienced team

Established Lumen Living as a specialised and focused developer and manager of Specialist Disability Accommodation in January 2021.
Team currently delivering 15 projects which includes 12 houses and 30 villas creating 61 participant places in the first fund.
The Lumen Living team is design focused having run numerous design workshops with various stakeholders to ensure it meets the diverse needs of the specialised customers.

Capacity to Deliver

Complex sector: funding, regulatory approval and changing technical specifications creating barriers to entry and requiring a specialist team including full-time senior development professionals running the strategy.
Blackoak Capital have invested over $750m delivering over $200m in capex and development in WA over the last 10 years.
Blackoak Capital to leverage buying power across projects and create efficiencies for land acquisitions and construction.

Strategic Partnerships

Strategic partnerships in place with industry specialists (including with significant east coast experience which is more advanced than WA) who bring the latest technical specifications and ability to identify and assist tenants.
Key established relationships with experienced builders in this heavily regulated sector.

Macro Driven Strategy

WA Addressable Market $1bn - $1.2bn

Currently 1,500+ active Participants in WA with SDA funding (with a forecast of 2,539), with only 502 available participant places in WA as of 31 March 2024, highlighting significant undersupply.
Similar market dynamics in South Australia.
Utilising extensive experience in the sector, Lumen Living aims to develop the strategically located portfolio to meet that demand.

Data-driven Strategic Investment

Research backed targeted investment in areas with greatest shortfall.
Leveraging industry collated data to forecast demand hotspots and drive purchasing decisions.

ESG Investment

Creating positive, real outcomes for a historically disadvantaged part of the community.
Addressing social inequity and placing our tenants at the forefront.
Energy efficient homes built to greater than 8 NatHERS rating.
Minimise embodied Carbon in construction process.
Solar power and batteries in every home.
Focus on UN Sustainable Development Goals.

Request an Information Memorandum

The Lumenate SDA Investment Trust II is currently open for investment to Wholesale Investors only. Please enter your details below to register your interest to receive an information memorandum.