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Synergis disability housing fund makes capital raise
Corrs Chamber Westgarth has advised Synergis disability housing fund, backed by major institutional investors.
Tony Zhang
Firms: Corrs Chamber Westgarth (Synergis Fund)
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Deal: Corrs Chambers Westgarth has advised on the initial capital raising by Synergis Fund, an evergreen fund launched by founders Social Ventures Australia and Federation Asset Management.
Value: Undisclosed.
Area: Capital raise, banking and finance.
Key players: The Corrs team was led by partner Fadi Khoury, with assistance from partners Rommel Harding-Farrenberg (banking) and Mark Payne (tax). Real estate partner Andrew Leadston advised on complex real estate development contract negotiations, including arrangements with Good Housing, the initial provider engaged to deliver the first properties.
Deal significance: The early backers comprise an impressive group of sophisticated investors including HESTA superannuation fund, Paul Ramsay Foundation and Suncorp. Early funds raised will be deployed to develop 100 specialist disability accommodation dwellings backed by the National Disability Insurance Scheme. The fund continues to raise capital, with the aim of expanding to $1 billion worth of dwellings over the next five years.
Lead partner Mr Khoury said: “The fund is an early ‘institutional grade’ mover into a new industry, which is expected to attract $5 billion in investor funding. Combined with government support by the way of NDIS payments of circa $700 million per year, the sector is expected to create suitable housing across Australia for over 28,000 people with disabilities.”
Impact Investing executive director Michael Lynch said: “As a strong market with increasing demand, there is great potential to work with other interested investors in the short to medium-term.”
Head of real estate at Federation Asset Management Jason Walter said: “The Synergis strategy is simple. We build quality homes, in the right locations, with the right amount of care, and ultimately the resident will be happy. This happiness is ultimately the key in mitigating vacancy risk. Synergis has ambitions of building over 1,000 homes across major cities in Australia.”
The fund targets a yield of 8-10 per cent per annum based on equity raised and a higher yield target where debt is used.
