Collingwood Park, QLD – High Physical Support SDA Property Sold with Two Participants in Place
Income Profile (at Settlement)
Participant 1SDA income: $44,478.40 p.a.Reasonable Rent Contribution: $12,848.00 p.a.Total: $57,167.40 p.a.Participant 2SDA income: $56,911.00 p.a.Reasonable Rent Contribution: $13,170.04 p.a.Total: $70,081.04 p.a.Total gross income: $127,248.44 per annumGross Yield: 11.5%
Background
The seller approached us after operating the property with two participants. Following the unfortunate passing of one participant, the seller decided to step away from the SDA sector altogether.Rather than selling the property under-performing, we advised waiting until a second participant was secured, allowing the property to be presented as a fully running SDA asset — a far stronger value proposition for investors in this space.
Challenges
SDA Provider pulled out after head lease terms was agreed
During the transaction, the existing SDA provider ceased operating in Queensland shortly before settlement. The sale had been structured around a 10% management fee with no onboarding costs, which is below typical market rates.
Solution
Make SDA providers fight for the management
Through our SDA provider network, we were able to secure two alternative providers willing to honour the same commercial terms. A new provider agreement was executed within days, and thereby ensuring that settlement proceeded on time and on the originally agreed economics.
Result and Impact
✅ Gross income of $127,248 per annum achieved, with an 11.5% gross yield.✅Sale price: $1.11 million✅Sale type: Off-market✅Buyer: Cash investor✅Tenancy: Two participants in place at settlement✅Result: Fully operational SDA property transferred without interruption
Insight and Expertise
This transaction highlights the advantage of being prepared to act decisively in the SDA space. The buyer was able to secure the property at an attractive price by moving quickly once the key fundamentals were in place, rather than overanalysing or waiting for a “perfect” scenario. In specialist asset classes like SDA, speed and certainty are often rewarded.