AVARI Alternative Accommodation Fund

The AVARI Alternative Accommodation Fund invests in established, income-producing Australian land with multiple opportunities to further enhance investor return for now and over time.

1. Stable income today: AVARI targets established operating assets that generate income from acquisition, providing a foundation while the broader value-creation strategy is executed.
2. Active value creation: AVARI unlocks more value from the land by developing and selling homes and improving asset performance, while retaining ownership of the land.
3. Long-term land ownership: The fund continues to own of the underlying land, receiving recurring site fees and maintaining exposure to its long-term capital appreciation.

The key characteristics of the Alternative Accommodation Fund include:

• 15% target total return
• 8% target annual distribution
• Semi-open-ended structure
• Annual liquidity target
• 50% target LVR
• $50,000 minimum investment

More resilient income
Residents own the homes located on the land and remain liable for site fees, reducing traditional vacancy and non-payment exposure. Site-fee increases are also built into contracts, providing an established mechanism for income growth over time.

Lower maintenance and capex exposure
Residents are responsible for maintaining their individual homes, reducing the Fund’s exposure to dwelling-level repairs, maintenance and replacement capex. The Fund’s responsibility is focused on common areas, facilities and infrastructure.

Less exposure to building depreciation
With residents owning the homes and the Fund retaining the underlying land, the Fund has less exposure to dwelling-level depreciation, ageing and obsolescence.