Second acquisition expands exposure to emerging land lease and alternative accommodation sector.
AVARI Capital Partners has announced the launch of the AVARI Alternative Accommodation Fund, alongside the acquisition of a second asset, further expanding its position in one of Australia’s fastest-growing housing sectors.
The Fund is focused on land lease communities and
alternative accommodation assets, targeting opportunities created by Australia’s ongoing housing undersupply, population growth, changing
demographics and increasing demand for more affordable forms of housing
The announcement follows the Fund’s initial acquisition in Cairns and coincides with the purchase of a second asset in Busselton, Western
Australia, a region experiencing strong population growth, housing demand and limited affordable accommodation supply.
Unlike traditional residential property investments, the strategy centres on owning and improving the underlying land while generating recurring rental income from residents and operators. The model seeks to combine stable income characteristics with long-term capital growth driven by increasing demand for affordable lifestyle-focused housing.
Australia continues to face significant housing supply challenges, with demand consistently outpacing the delivery of new housing stock. At the same time, affordability pressures, an ageing population and changing lifestyle preferences are driving demand for housing solutions that
sit outside traditional residential markets.
The Alternative Accommodation Fund has been established to capitalise on these long-term trends through a disciplined acquisition strategy focused on underutilised accommodation assets, caravan parks, land lease communities and other alternative living opportunities capable of generating sustainable income and value creation.
AVARI Capital Partners Chief Investment Officer Ben Coughlin said the strategy reflects the firm’s long-standing approach of identifying opportunities where structural market shifts create attractive risk-adjusted investment outcomes.
“Australia’s housing needs are evolving, but investment markets have been relatively slow to recognise where some of the most compelling long-term opportunities are emerging,” said Coughlin.
“We believe land lease communities and alternative
accommodation are set to become an increasingly important part of Australia’s housing landscape. The sector sits at the intersection of several powerful
structural trends, including population growth, housing supply constraints, demographic change and growing demand for affordable lifestyle-focused living options.
While institutional capital is beginning to enter the
sector, we believe the most significant wave of institutionalisation is still ahead. For investors, that presents a rare opportunity to access a growing
asset class before it becomes more broadly recognised and competed for by larger pools of capital.”
The Fund’s acquisition strategy is underpinned by AVARI’s integrated property and capital expertise, with the team applying the same disciplined investment process that has been used across more than $1.4 billion in real estate investments and private credit transactions.
The acquisition of the Busselton asset marks an important milestone for the strategy, providing investors with exposure to a growing portfolio of assets positioned to benefit from the increasing demand for alternative housing solutions across Australia.
As governments, communities and investors continue to search for solutions to Australia’s housing shortage, AVARI expects alternative
accommodation and land lease communities to become an increasingly important component of the national housing landscape.
The AVARI Alternative Accommodation Fund is now open to eligible wholesale and sophisticated investors.