ASA Real Estate Partners opens new $250 million Social Infrastructure Fund

ASA Real Estate Partners has opened its first sector specific fixed term investment trust, the ASA Equal Living Social Infrastructure Fund to select wholesale investors. 

The new fund is raising $50 million of initial equity, the first step towards a target that will take the asset base to over $250 million over a five year fund term. ASA Real Estate Partners together with Equal Living Group will co-invest up to 10 per cent of the equity in the Fund. 

The initial portfolio will comprise three newly completed, income producing assets in metropolitan Melbourne, 100 per cent leased to the Equal Living Group on 20 year triple net leases indexed to CPI annually. 

ASA Real Estate Partners was set up by Alex Abell, Tim Slattery and Chris Aylward (the senior leadership team from APN Property Group) in late 2023. 

APN held $3.2 billion in assets under management across its specialist real assets funds at the time it was sold to Dexus in 2021 in an all cash friendly transaction of $320 million. 

Managing Partner, Tim Slattery said, “We really like alternate real asset sectors where the fundamentals of underlying occupier demand and clean cash flow are key value drivers.” 

The assets provide ‘step down’ healthcare accommodation for those Australians with life-changing injuries - those who cannot live long term in hospital but equally need care such that they can’t live at home. 

The assets are operated by Equal Living Group, a well-established, registered operator, and are designed for long term Government funding programs including the TAC, Worksafe, and a specialised, core component of the NDIS. 

People being cared for include members of our community who have suffered strokes, acquired brain injuries, motor neurone disease, multiple sclerosis and major physical trauma including quadriplegia and paraplegia. 

There is a significant shortage of high quality accommodation with industry estimates of a further 10,000 beds required to 2033. 

“Here we see the potential for the asset class which is emerging and not yet supported or priced by institutional capital – we see a distinct parallel to healthcare real estate coming out of the global financial crisis in 2010 which was a very profitable investment. Great assets, profitable tenants and priced without significant competitive tension.” 

“This as an attractive risk adjusted return opportunity underpinned by newly built, quality assets with 20 year leases to the Equal living group.” 

The structure of the investment gives us ownership of the hard assets as well as upside equity participation of up to 30 per cent in our partner and tenant, an established business with over 150 staff, a proven and profitable operational track record and over 25 years of relevant experience.” 

In 2024 ASA Real Estate Partners took over the ASA Diversified Property Fund which has been in operation since 2006, pays monthly distributions and returned 10.3 per cent for FY26, the highest of eight comparable funds tracked by Morningstar. 

Its longer term performance over 10 years to June 2026 was 9.2 per cent per annum and currently pays a 6.9 per cent per annum distribution yield (100 per cent of distributions being tax deferred in FY26). 

Slattery added, "We have more than $20 million of our own money invested alongside our investors in our funds. Skin in the game is a key part of our governance approach." 

ASA Real Estate Partners sees social infrastructure as providing essential services to the community, with the key attributes including long dated income with inflation protection and exposure to sectors that provide financially superior outcomes to the taxpayer. 

Interest in social infrastructure is growing, as older group homes are being replaced, and the number of eligible participants keeps rising with supply of modern purpose built accommodation assets not keeping pace with demand. The investment also goes to alleviating the problem of ‘bed block’ with some parts of Australia’s hospital system experiencing an estimated 8-10 per cent of beds occupied by patients awaiting discharge to other (less costly) accommodation. 

Private sector delivery of these assets and services is highly cost effective compared to relevant alternatives. The private sector can build and run this accommodation at up to 70 per cent less than the equivalent nightly cost to Government of an acute hospital bed. According to industry analysts, the program will save Government an estimated $6 billion over the ten years by 2033. 

Slattery concluded, “The NDIS, at its core, was designed to provide critical support and essential accommodation for vulnerable members of the community. These assets do that in a very cost effective manner for the Government – as evidenced by the fact that only about 1 per cent of the annual NDIS budget is utilised to care for these people who need lifelong support.” 

The Fund is targeting a stabilised distribution yield of 7.00 per cent per annum and a 18 per cent total return (prior to performance fee and tax) across the real estate as well as the equity participation in the Equal Living Group. The Fund’s capital raising period is open until 13 November 2026.