ASA Equal Living Social Infrastructure Fund

The Fund is an unlisted trust that aims to provide Investors with an IRR in excess of 15% per annum (pre-tax, pre-performance fee) through a portfolio of purpose-built social infrastructure assets, combined with equity exposure to the Equal Living Group.

The Fund's investment thesis is to own long-let, government-backed social infrastructure real estate at an attractive cap rate, and to add a second return stream by co-investing in the operating platform that develops and runs it.

At launch, the Fund's Initial Portfolio is expected to comprise three completed, tenanted assets at Dandenong, Preston and Werribee in Victoria, with a combined independent valuation of approximately $50.7 million. Each asset is leased to Equal Living Group on a 20-year triple-net basis, with lease income derived substantially from Commonwealth Government NDIS funding.

Beyond the Initial Portfolio, the Fund holds a first right to acquire further development sites identified by Equal Living Group — including a site in Heidelberg, opposite the Austin Hospital in Victoria's second-largest health precinct after Parkville — supporting the Fund's growth over its term.

Target returns and distributions are not guaranteed. Please refer to the Information Memorandum for full details.

The Fund is an unlisted trust that aims to provide investors with quarterly cash income and the opportunity for capital growth over the medium to long term, by investing in a portfolio of purpose-built social infrastructure real estate alongside an equity interest in the operating business that develops and runs it.

How the Fund works

Investor capital is pooled with borrowings from a major Australian bank to acquire, develop and hold social infrastructure assets, under a Joint Venture with Equal Living Group. Equal Living Group develops and operates the assets under long-dated, triple-net leases; the Fund owns the freehold and provides development funding on a fund-through basis.

Fund income

Rent from the Fund's properties, together with interest earned on its loan note to Equal Living Group, generates income for the Fund. This income is used to meet interest expenses on the Fund's borrowings, management fees, property-related expenses and appropriate ongoing Fund expenses. Once these costs and any provisions are met, the remaining income is distributed to investors, targeted at 7.00%+ p.a., paid quarterly.

Medium to long-term capital growth

Capital growth is expected to be derived from rental growth under CPI-linked leases, development profit share, potential compression of exit capitalisation rates as the sector matures, and growth in the value of the Fund's equity interest in Equal Living Group as the operating platform scales.

Equal Living Group and the social infrastructure sector

Equal Living Group is a specialist developer and operator of purpose-built social infrastructure, generating substantially all of its revenue from long-term Australian Government funding programs, including the National Disability Insurance Scheme (NDIS). Demand for this accommodation is underpinned by an established and growing participant base, bipartisan policy support, and a documented shortfall of purpose-built, high-acuity accommodation across Australia.

There are risks associated with every investment, and it is important that investors consider these risks and take into account their own personal investment goals and circumstances before investing. Please refer to the Information Memorandum for further details, including the full risk factors set out in Section 7.

The Fund will invest via a sale and leaseback transaction in a portfolio of assets specifically designed to provide accommodation to a range of people requiring significant care such as specialist disability, aged care and healthcare services under long term leases of up to 20 years with a tenant entity of the Equal Living Group (Assets).

The Fund intends to hold these Assets over the long term to generate rental income, with additional potential income growth and capital growth.

The Fund also intends to make an equity investment in a joint venture with the Equal Living Group, which will operate and develop (including on a fund-through basis) additional Assets (Joint Venture).

The Fund may also provide an amount of funding to enable the additional growth of the Equal Living Group via Loan Notes. Subject to the satisfaction of certain funding conditions, the Fund will receive an equity interest of up to 30% in the Equal Living Group (via Equity Warrants), which would provide the Fund with exposure to the potential growth in value of the Equal Living Group over time.

Subject to the initial target equity being raised, the Fund’s Initial Portfolio will comprise one or more of the following completed Assets, which the Fund will acquire from the Equal Living Group:

» 5 Stud Road, Dandenong, VIC 3175;
» 314 Bell Street, Preston, VIC 3072; and
» 12 Pyke Street, Werribee, VIC 3030.

An entity associated with the Equal Living Group will also maintain an investment in the Fund. Equal Living Group is an established business which includes Equisent Disability Services Pty Ltd (ACN 640 474 166) (Operator), an authorised registered provider of services under the NDIS. 

Direct property

The Fund's assets are purpose-built, mixed-use social infrastructure properties, combining ground-floor allied health and support office space, supported independent living (SIL) accommodation, and Specialist Disability Accommodation (SDA) apartments meeting High Physical Support design standards. Assets are located within Melbourne metropolitan health precincts and major regional centres, and are leased to Equal Living Group on a 20-year triple-net basis.

Investment in Equal Living Group

In addition to owning the underlying real estate, the Fund provides growth capital to Equal Living Group by way of a capitalising loan note, and holds equity warrants that may entitle the Fund to an equity interest of up to 30% in Equal Living Group, subject to the Fund meeting certain funding thresholds. This provides investors with a second return stream linked to the growth and eventual value realisation of the operating platform.

Property development

The Fund holds a first right to acquire freehold interests in a pipeline of future development sites identified by Equal Living Group, and to provide development funding on a fund-through basis. The near-term pipeline includes approximately $100 million of additional development opportunity under option, including a site in Heidelberg opposite the Austin Hospital.

Debt facility and gearing

The Fund intends to obtain debt funding from a major Australian retail bank, targeting gearing of 40-50% LVR based on completion value. Initial debt funding is expected to be approximately $25 million, subject to typical covenants including a maximum LVR of approximately 60% and a minimum interest cover ratio of approximately 1.75x.

An illiquid, long-term investment

An investment in the Fund should be considered illiquid. Investors are committing capital for at least the Fund's Minimum Term — approximately five years from First Close (expected 16 October 2026 to on or around 16 October 2031) — which may be extended on the terms set out in the Information Memorandum.

Liquidity event

The Trustee intends to provide a liquidity event to investors at the end of the Minimum Term, with up to two further one-year extensions available at the Trustee's discretion. Following these extensions, the Fund Term may only be further extended by Special Resolution of Unitholders. The Trustee will seek to maximise value for investors through the most advantageous method available at the time, which may include a sale of units, an initial public offering, a recapitalisation, registration with ASIC, or another mechanism it considers appropriate.

Redemptions

Redemptions are not guaranteed and are entirely at the Trustee's discretion. The Trustee does not currently intend to offer any liquidity opportunity before the end of the Minimum Term.

Transfers

There is not expected to be a formal secondary market for Units. Investors may transfer their Units to third parties with the Trustee's prior written consent, which may be withheld at the Trustee's absolute discretion. Transfers may result in stamp or landholder duty payable by the purchaser.

Please refer to the Information Memorandum for full details of the terms applicable to withdrawals, redemptions and transfers.

ASA Real Estate Partners Pty Ltd (ASA) is a specialist Australian real estate investment management company. ASA’s Directors have over 90 years of combined relevant experience gained from their careers in investing in property.

ASA Real Estate Partners Pty Ltd

The ASA team’s experience includes investing in Australia across the States and Territories and internationally and includes investing in a range of different types of commercial property including retail, office, residential, storage, healthcare and industrial. 

ASA’s experience includes investing and operating unlisted and ASX listed real estate investment trusts for wholesale and retail investors.

ASA’s directors previously worked together at APN Property Group, an ASX listed real estate investment management company which was sold to Dexus in 2021. At that time APN’s funds under management exceeded $3 billion and included two ASX listed real estate investment trusts.

ASA is committed to putting its investors first and to operating under its values of integrity, courage, humility and commercial acumen. ASA is headquartered in Melbourne, Australia and its team is based in Melbourne and Brisbane. Its team includes investment professionals with significant expertise across real estate acquisition, sales, leasing, development, capital expenditure and asset improvement, strategy, financing, capital management, accounting, compliance, governance, risk management, information technology, investor relations, sales and marketing. ASA uses standard operating procedures and technology to enhance its operational efficiency and risk management.

ASA values excellent customer service in the delivery of risk adjusted investor returns. 

The Responsible Entity is wholly owned by ASA Real Estate Partners Pty Ltd.

For more information on ASA visit www.asarep.com.

Investment philosophy

It is our investment philosophy that the market prices for properties do not always reflect the underlying value. This may present an opportunity to generate value by buying and selling properties at the most optimal time. Value can also be achieved, and investment risk mitigated, by skillful property and tenant management.

The properties we purchase are carefully selected after assessing the value, considering inherent risks, and the ability to mitigate those risks. The selection process also takes into account:

• location attributes, such as demographic profile, road and services infrastructure and the level of competition;
• property specific criteria, such as the quality of buildings and opportunities to enhance or redevelop the property to protect and/or grow future income and capital value; and
• covenant strength and tenant lease profile.

We actively manage the Fund’s portfolio with the aim to optimise the Fund’s return.

Alex has over 20 years of experience in real estate funds management, including asset management, leasing,  transactions, corporate finance, and investor relations.

Prior to cofounding ASA, Alex was Head of Listed Funds at Dexus (ASX:DXS), where he oversaw $2.4 billion in assets. He was also instrumental in delivering one of the first carbon-neutral certified ASX-listed property trusts under the Climate Active verification standard.

Alex holds a Bachelor of Commerce and an Advanced Diploma of Financial Services.

Over 20 years’ experience across real estate investment management, finance and law.

Most recently CEO of ASX listed APN Property Group (ASX:APD) and then Head of Listed Funds with Dexus (ASX:DXS) following the agreed sale of APN to Dexus.

11 years with APN and growth of platform from under $1 billion to in excess of $3.8 billion (including sale of healthcare fund) market value of platform $26 million to $320 million (2013 – 2021).

Previously roles in investment banking with Goldman Sachs and corporate law with Herbert Smith Freehills.

Mergers, acquisitions and financing transactions worth over A$8 billion within Australia and internationally including a number of significant commercial real estate transactions across, retail, office, industrial and healthcare including in recent years the listing on ASX of APN Industria REIT and APN Convenience Retail REIT with over A$800 million in assets at IPO dates.

Chair, Property Industry Foundation Victoria, National Board Member, Property Industry Foundation.

Degrees in Law (Honours), Science, and Masters of Business Administration (London Business School).

Chris has over 50 years of experience in real estate, having started his career in 1972. He was the founder, major shareholder, and Chairman of ASX-listed APN Property Group (ASX: APD). 

Previously, Chris was a principal at Richard Ellis (now CBRE), responsible for City Sales and Leasing, and co-founded Grocon Pty Ltd, where he was a substantial shareholder and director until 1996.

Chris has extensive expertise in real estate management, risk management, marketing, construction, and development across residential and commercial sectors. Outside of real estate, he has a keen interest in the wine industry, founding Kooyong Wines and Ocean 8 Wines.