ART, ISPT to build $585m Sydney life sciences hubBY JAMIE WILLIAMSON | THURSDAY, 28 NOV 2024 9:12AMAustralian Retirement Trust and Industry Super Property Trust signed a 99-year lease from the University of Sydney to build a healthcare and life sciences hub. As Australia's population ages, demand for healthcare is expected to increase significantly, and ART and ISPT will meet some of that demand with a new facility in Sydney's Camperdown. It's a 50-50 joint venture between the ISPT Core Fund and ART, via a mandate with ISPT. The hub, which has a projected end value of $585 million, will sit between Royal Prince Alfred Hospital and the University of Sydney, with the two giants leasing a 6000sqm site from St John's College within the Camperdown Health, Education and Research Precinct. The facility will encompass 30,000 sqm of net lettable area, with the building being designed for a range of uses including an acute private hospital, consulting suites, specialist medical occupiers such as pathology and diagnostics, education, and medical research / life sciences organisations. "The site's location in the Camperdown Health, Education and Research Precinct is highly advantageous - the precinct comprises other significant public and private health services, education facilities and research centres. The proposed ancillary health, education, research, and commercial uses will complement other key facilities in the local area," ISPT head of development, healthcare, life sciences and education Jason Lourensz 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." It's expected to be completed in 2029. The University of Sydney expects Australia's health spending to more than double to $270 billion by 2035, underpinning the view that healthcare and life sciences is a strategic, defensible asset class with long-term upside, ISPT said. About 22% of all Australians are expected to be aged over 65 by 2026. Meantime, ART also expects to see an increasing demand for investment in quality healthcare services in the future, saying the sector provides strategic diversification benefits and helps deliver strong long-term returns for members. "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, which is why Australian Retirement Trust sees value in this space," ART senior portfolio manager - head of real estate Mark Lee said. "Australian Retirement Trust's co-investment with ISPT in the new Camperdown Healthcare and Life Sciences Hub adds to the Fund's existing suite of investments in the healthcare sector. We are confident it will provide dual benefits in the form of strong returns for our members and enhancing the health and wellbeing of the Sydney community." Related News |
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