A partnership between Australian Retirement Trust (ART) and asset manager ISPT has secured the rights to a site in Sydney for a A$585m (€361.5m) healthcare and life sciences hub project.
The partnership has secured a 99-year lease for the Missenden Road, Camperdown site from St John’s College at the University of Sydney.
The ISPT Core Fund and ART have formed a 50-50 joint venture, through a mandate with ISPT, to develop and manage a 6,000sqm site, expected to be completed in 2029.
Mark Lee, senior portfolio manager - head of real estate at ART, said: “Identifying and acting on market trends and conditions is critical to making informed investment choices.
“Like many other OECD nations, Australia’s population is ageing. In combination with an increase in life expectancy thanks to modern medical advancements, and overall population growth, these trends naturally lead to an increase in demand for domestic healthcare services.”
Jason Lourensz, head of development, healthcare, life sciences and education at ISPT, said: “The last few years have demonstrated why world-leading healthcare, research and pharmaceutical spaces are an absolute necessity, underpinning our desire to deliver more state-of-the-art healthcare facilities that can be co-created with key tenant partners to deliver higher levels of customer care, innovation and operational efficiency.”
Doug Cain, acting head of funds management at ISPT, said: “Given strong, underlying market drivers, we view healthcare and life sciences as a highly defensible asset class and as we continue to grow our mandate business by delivering bespoke strategies and opportunities for our investors.”
Robyn Ward, executive dean medicine and health at The University of Sydney, said the Healthcare and Life Sciences Hub would be a welcome addition to the Camperdown health precinct, joining the University and NSW Government’s Sydney Biomedical Accelerator in enhancing our capability to fast-track scientific discovery into improved patient outcomes.
To read the latest IPE Real Assets magazine click here.
