Inside the SDA B.O.O.T.S Fund: How a 7.25% Target Coupon Is Backed by Four Income Pillars

Australia’s demand for high-quality, accessible accommodation continues to grow, driven by an ageing population, evolving healthcare needs, and the National Disability Insurance Scheme (NDIS). Amidst this landscape, the SDA B.O.O.T.S Fund emerges as a distinctive opportunity for wholesale clients seeking to invest in a sector with significant social impact and a targeted return profile.

The Fund offers a unique bond structure designed to provide investors with a 7.25% per annum target coupon, underpinned by a strategic focus on diversification across four robust income pillars. This approach aims to mitigate single-stream reliance, fostering greater income stability and asset resilience. Operated by PNP Property Holdings and Investments Pty Ltd and overseen by the reputable Melbourne Securities Corporation Ltd, the Fund embodies a commitment to professional governance and disciplined execution.

This overview delves into the core mechanics of the SDA B.O.O.T.S Fund, exploring how its innovative structure, diversified income strategy, and PNP’s proven expertise converge to create a compelling investment proposition within Australia’s accessible housing market.

Understanding the SDA B.O.O.T.S Fund for Wholesale Investors

The SDA B.O.O.T.S Fund is structured as a single-asset, open-ended, unlisted, and unregistered Australian unit trust, specifically tailored for wholesale clients under the Corporations Act 2001 (Cth). It provides an avenue for eligible investors to participate in the development of premium, multi-use accessible properties across Australia.

At its core, the Fund targets a 7.25% per annum return, paid as a fixed coupon on Bonds issued by PNP Property Holdings and Investments Pty Ltd. It’s crucial to note that this is a target return and is not guaranteed. Distributions are scheduled annually in arrears for the initial two-year development period, transitioning to quarterly in arrears thereafter. The minimum investment for the unit trust is AUD 500,000, with Bonds available at AUD 100,000 per Bond, and a targeted raise of AUD 20 million.

Investors benefit from the oversight of Melbourne Securities Corporation Ltd, an independent Trustee holding an impressive AUD 34 billion in assets under appointment (AFSL 428289). This robust governance framework, coupled with a guarantee from PNP Australasia Pty Limited, provides an intended layer of security, with Bonds likely ranking behind a primary (bank) financier. The Fund’s structure ensures that PNP charges no fees to the Fund, covering Trustee and Administrator/Registrar costs, allowing investors to essentially receive a pass-through interest of 7.25%.

Available to wholesale clients under the Corporations Act 2001 (Cth). Returns are not guaranteed.

Addressing Australia’s Accommodation Gap with Purpose-Built Design

Australia faces a critical shortage of appropriate accessible housing. While the NDIS supports over 761,442 Australians, approximately 25,502 hold Specialist Disability Accommodation (SDA) funding allocations (as at 30 December 2025). The existing SDA stock often falls short, characterised by minimum-standard builds, suboptimal locations, and institutional-style fit-outs, leading to vacancies and diminished investor confidence.

The SDA B.O.O.T.S Fund, through PNP Property Holdings and Investments, directly addresses this structural gap by focusing on premium SDA and multi-use accessible properties. PNP’s approach is defined by five core principles:

• High Physical Support as Baseline: Exceeding minimum SDA requirements, all dwellings are High Physical Support certified.
• Universal & Adaptable Design: Properties are designed for long-term usability and easy adaptation without structural redesign.
• Residential Quality over Institutional Delivery: Creating homes that prioritise comfort, aesthetics, and integration within communities.
• Lifecycle Durability & Compliance Discipline: Utilising durable materials, integrated smart technology, and fully compliant fire safety systems.
• Integrated Delivery & Oversight: PNP’s vertical integration ensures quality control from concept to completion and beyond.

This commitment to excellence has been independently validated, with a Western Sydney University assessment in 2025 finding 96% compliance and performance for PNP’s SDA projects, significantly exceeding the ~60% industry benchmark for comparable Class 1b SDA dwellings.

The Four Income Pillars: Diversifying Revenue Streams

A cornerstone of the SDA B.O.O.T.S Fund’s strategy is its diversification across four distinct income pillars. This multi-class, adaptable design philosophy ensures that properties can transition between uses without requiring extensive structural redesign, thereby broadening the demand base and enhancing tenancy stability.

1. Premium Specialist Disability Accommodation (SDA): High Physical Support certified dwellings that surpass NDIS minimum standards, designed for long-term residency by participants with high support needs.
2. Health, Outpatient & Short-Stay Transitional Accommodation: Properties strategically located near medical precincts, catering to hospital discharge, rehabilitation, and outpatient demand, offering short to medium-term accessible stays.
3. Luxury Retirement Living: Fully accessible residential properties in desirable locations, designed to meet the evolving needs of an ageing population seeking comfortable and dignified living environments.
4. Accessible Holiday Accommodation: Full accessibility in high-demand lifestyle and tourism locations, tapping into an approximately AUD 30 billion accessible-tourism market with currently untapped potential.

This integrated approach to property use is critical for reducing reliance on a single income stream, such as NDIS SDA funding alone. By cultivating diversified tenancy pathways, including government-adjacent and private arrangements, the Fund aims to achieve stronger occupancy rates, more predictable income profiles, and reduced downtime between tenancies. This strategic flexibility is a key differentiator, underpinning the Fund’s long-term sustainability and target return.

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The structural gap is not funding availability — it is execution discipline, location selection and integrated capability.

PNP’s Integrated Delivery: A Proven Track Record

The success of the SDA B.O.O.T.S Fund is deeply rooted in the PNP Group’s vertically integrated capability and extensive industry experience. Established in 2014, the Group boasts over 100 years of combined hands-on experience across its various entities:

• PNP Property Holdings & Investments: The Issuer and registered SDA provider for the Fund.
• PNP Constructions: The multi-award-winning construction arm, licensed across SA, NSW, and QLD, responsible for delivering all Fund developments.
• PNP Australasia: Provides construction compliance advisory, defect analysis, and remediation consulting.
• PNP Certifications: Offers independent auditing and certification services.
• PNP Institute: A Registered Training Organisation (RTO) contributing to industry best practices.

This integrated model ensures unparalleled control over the entire delivery chain, from initial design and construction to ongoing property management. PNP’s commitment to quality is evident in projects like the Apollo Apartments in QLD, which was awarded HIA Queensland Specialised Housing of the Year 2025 and is a Finalist for the 2026 Australian HIA Awards. Another example, The Mill by PNP in Caboolture, QLD, achieved full occupancy shortly after enrolment, generating substantial annual rental income.

Furthermore, PNP employs independent cost discipline through MBM, a national Quantity Surveying firm, ensuring rigorous cost planning, feasibility validation, and national benchmarking. This meticulous oversight, combined with PNP’s mandate for at least 50% of dwellings to be supported by expressions of interest prior to construction completion, significantly reduces execution risk and strengthens the investment profile.

B.O.O.T.S: A Mandate for Sustainable Outcomes

The name B.O.O.T.S is an acronym that encapsulates the core philosophy and strategic mandate of the Fund, guiding every aspect of its operation and development. This framework ensures a disciplined, long-term approach to delivering high-quality accessible accommodation and sustainable returns.

• B – BUILD: Focus on high-quality, purpose-built properties that exceed minimum SDA and building compliance. This commitment to superior construction results in lower lifecycle costs, higher durability, and reduced operational friction.
• O – OPPORTUNITIES: Capitalising on structural demand across disability, ageing, healthcare transition, and accessible accommodation. This broadens the demand base and creates diversified tenancy pathways, enhancing occupancy rates.
• O – OUTCOMES: Delivering design-led properties with provider-aligned layouts. This approach leads to stronger occupancy, a predictable income profile, and reduced downtime, directly benefiting investors and residents alike.
• T – TRUST: Ensuring tenancy management is separated from care delivery, with properties managed independently of Supported Independent Living (SIL) providers. This reduces turnover risk and fosters a more stable living environment.
• S – SUSTAINABILITY: Grounding the long-term strategy in demographic demand, regulated pricing, and disciplined cost control. This creates durable income streams and regulatory resilience, vital for a lasting investment.

This mandate ensures that the Fund avoids speculative development, minimum-standard accommodation, or sole reliance on short-term leasing or capital appreciation. Instead, it prioritises in-house construction capability, independent cost planning, and rigorous compliance verification to deliver enduring value.

Case Studies in Excellence: Building for Impact

PNP’s commitment to delivering exceptional accessible housing is showcased through a portfolio of successful projects and seed developments for the SDA B.O.O.T.S Fund. These examples highlight the Group’s expertise in creating properties that meet critical demand while adhering to the highest standards of design and compliance.

Two key seed projects for the Fund are HESTIA on the Sunshine Coast (Maroochydore), QLD, and THE GRACES in Northern Gold Coast, QLD. HESTIA is strategically located near Sunshine Coast University Hospital and allied-health networks, addressing a catchment where approximately 273 participants hold SDA funding. THE GRACES, near Gold Coast University Hospital, targets a catchment with around 133 SDA-funded participants. Both projects are low-density complexes offering a mix of 1, 2, and 3-room High Physical Support apartments, designed with refined coastal aesthetics.

Beyond the seed projects, PNP’s track record includes:

• THE MILL by PNP, Caboolture, QLD: Three HPS-certified villas achieving full occupancy shortly after enrolment, generating in excess of AUD 200,000 annual rental income.
• APOLLO APARTMENTS by PNP, QLD: A double-storey residential complex with four HPS apartments, awarded HIA Queensland Specialised Housing of the Year 2025.
• POINT TURTON, SA: A complex accessible housing retrofit for a spinal cord injury participant in a regional coastal town, demonstrating PNP’s capability in intricate modifications.
• GLENELG NORTH, SA: A major defect remediation and asset repositioning project for a 24-unit complex, resulting in a post-completion valuation of ~AUD 16.5 million and a ~100% rental revenue increase.

These diverse projects underscore PNP’s ability to deliver across various scales and complexities, consistently achieving high standards of compliance, functionality, and resident satisfaction.

The Trust and Governance Behind Your Investment

The SDA B.O.O.T.S Fund is built upon a foundation of robust governance and experienced leadership, providing wholesale investors with confidence and transparency. The Fund’s structure ensures independent oversight and professional management at every stage.

Manager: PNP Property Holdings and Investments Pty Ltd (AR No. 001316502) is responsible for the overall strategy, development, and management of the Fund’s assets. The leadership team, including Co-Founders Marcus Pavlakis (Strategy, Development and Projects Director) and Eva Pavlakis (Director), brings decades of combined experience in building, civil engineering, compliance, and regulatory governance.

Trustee: Melbourne Securities Corporation Ltd ACN 160 326 545 (AFSL 428289) acts as the independent Trustee, holding AUD 34 billion in assets under appointment. Their role is critical in safeguarding investor interests and ensuring the Fund operates within its stated mandate and regulatory requirements.

Advisory Committee: An independent Investment & Governance Advisory Committee provides strategic guidance and oversight. Key members include Rick Fitzpatrick (Non-Executive Director, PNP Property Holdings and Investments), Chris Krotiris (Director, CK Finance and Advisory), and George Elmassian (Principal Lawyer, GKE Lawyers). Their collective expertise spans finance, accounting, law, and corporate governance.

Further strengthening investor confidence, the Bond Issuer, PNP Property Holdings and Investments Pty Ltd, benefits from an intended guarantee from PNP Australasia Pty Limited. This comprehensive governance framework underscores the SDA B.O.O.T.S Fund’s commitment to professionalism and accountability.

Corporate Social Responsibility: Investing with Purpose

Beyond delivering financial returns, the SDA B.O.O.T.S Fund, through PNP, is deeply committed to making a positive social impact. This commitment is integrated into the Group’s ethos, aligning investment with meaningful community contributions and ethical practices.

PNP has a strong track record of corporate social responsibility (CSR), evidenced by:

• A Project-Linked Contribution Commitment of AUD 10,000 to Paralympics Australia for every SDA project delivered.
• Over AUD 150,000 contributed to various charities, sponsorships, and community initiatives.
• Sponsorships and support for causes such as Moon’s Mission + Genetic Cures for Kids, Heartbeat of Football, Caboolture Snakes All Abilities Rugby (2026 sponsor), and the Children’s Cancer Institute Australia.
• Naming Sponsor for the National Disability Leadership Organisation (NDLO) Support Worker of the Year Award 2023.
• Platinum Sponsor for Camden Council International Women’s Day 2024, and partners with Women in STEM initiatives like Women of Wisdom (WoW) and Future Ladies Tradies.
• Pro-bono technical advisory and compliance support for NDIS participants and families facing defective building work or non-compliant modifications.
• Regional capability that includes co-designing accessible housing with Aboriginal Elders in regional Queensland and complex remote disability home modifications.

Investing in the SDA B.O.O.T.S Fund means supporting a business that not only understands the critical need for accessible housing but actively contributes to the broader community, embodying a true spirit of purpose-driven investment.

Frequently Asked Questions

What is the target return for the SDA B.O.O.T.S Fund?

The Fund targets a 7.25% per annum coupon (before tax, net of fees and costs). It is important to note that this is a target only and may not be achieved, as returns are not guaranteed.

Who can invest in the SDA B.O.O.T.S Fund?

The Fund is offered exclusively to wholesale clients within the Corporations Act 2001 (Cth). Eligibility criteria include investing AUD 500,000+, having AUD 2.5M net assets, or AUD 250,000 gross income for each of the last two financial years, or otherwise satisfying the Trustee.

How does the Fund diversify its income streams?

The Fund leverages four income pillars: Premium Specialist Disability Accommodation (SDA), Health/Outpatient & Short-Stay Transitional Accommodation, Luxury Retirement Living, and Accessible Holiday Accommodation. This multi-class approach broadens the demand base and reduces reliance on a single income source.

What role does MSC Trustees play?

Melbourne Securities Corporation Ltd (MSC Trustees) acts as the independent Trustee for the Fund. With AUD 34 billion in assets under appointment, MSC Trustees provides robust governance and oversight, safeguarding investor interests and ensuring compliance.

Are there fees charged to investors?

PNP charges NO fees directly to the Fund and covers Trustee and Administrator/Registrar costs. This structure means investors essentially receive a pass-through interest of 7.25% on their Bonds, net of these operational expenses.

What is the investment term and liquidity?

The investment term for units is 15 years from the issue date. The Fund is illiquid, meaning there is no secondary market for units, and redemption is typically at the end of the Investment Term. Early Bond Redemption is possible on 5 days’ notice, subject to an Early Prepayment Fee (minimum earn of 12 months).