Invest
Hybrid development unlocks new potential for NDIS housing in metro hotspots
Invest
Hybrid development unlocks new potential for NDIS housing in metro hotspots
In a ground-breaking strategy aimed at addressing the stark imbalance between the location of Specialist Disability Accommodation (SDA) developments and the actual areas of demand, Aligned Disability Investments has paved a new path with what CEO Arthur Naoumidis calls "hybrid development."
Hybrid development unlocks new potential for NDIS housing in metro hotspots
In a ground-breaking strategy aimed at addressing the stark imbalance between the location of Specialist Disability Accommodation (SDA) developments and the actual areas of demand, Aligned Disability Investments has paved a new path with what CEO Arthur Naoumidis calls "hybrid development."
This innovative approach offers a crucial bridge between enticing investor involvement and tackling the urgent need for disability housing solutions in metropolitan hotspots—areas that simultaneously host a higher population of individuals with disabilities and come with a heftier land price tag.
Under the traditional model, the high costs of land in major cities have driven most SDA development to regional and greenfield locations, despite stronger demand in urban centers. However, aligned Disability Properties' (ADP) Fund's hybrid development model seeks to turn this paradigm on its head. It strikes a balance by splitting the investment between residential real estate and SDA facilities, typically working with a formula of two residential apartments for every one SDA apartment. The residential units are sold to offset the heavy land and construction debts, while the SDA portion remains within the fund, generating a stream of rental income for investors.
"The hybrid model is simple with a natural and attractive exit strategy and a high income return with the security that government benefit payments provide," explains Naoumidis, underscoring the elegance and practicality of this investment strategy.
With the promise of creating a portfolio attractive enough for institutional buyers, the ADP Fund intends to cling to the completed SDA properties. The endgame is to offer this portfolio for sale, dangling the prospect of handsome capital gains in front of potential large-scale investors and maintaining attractive income during the retention period.
Investors worried about liquidity need not fear—the model has thought it through, offering an exit option whenever the ADP Fund parts with an asset. Additionally, investors wield collective power to determine whether the fund gets another term after its initial five years.
But the benefits don't stop there. The ADP Fund is democratizing the sphere of shared SDA housing investment, previously out of reach for smaller investors and Self-Managed Super Funds (SMSFs). Thanks to the collaboration between Aligned Disability Investments and BrickX, these investors can now confidently step into this arena.
Anchored by robust numbers highlighting the investment's potential—4.3 million Australians living with disabilities and projections of service demand scaling up to 741,000 individuals by 2026—the ADP Fund promises not just diversification but a stronghold in the most lucrative rental markets, namely major cities. This focus contrasts boldly with current trends which miss the mark by overlooking the high-density urban centres.
With these powerful metrics, including the pressing need for over 2,500 additional dwellings by 2026 according to NDIS Quarterly reports, investors and financial advisers would be wise to consider the ADP Fund's SDA housing as a key component of a diversified and income-focused portfolio. The message is clear: hybrid development isn't just a savvy financial play; it's a vital answer to an urgent societal requirement.
RELATED ARTICLES
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
