ISPT and ART acquire site to develop $585m Healthcare and Life Sciences Hub in Sydney’s premier healthcare precinct
The Missenden Road facility will encompass 30,000 sqm of NLA. The project is a 50-50 joint venture between the ISPT Core Fund and ART, via a mandate with ISPT.
Leading property fund manager ISPT and Australian Retirement Trust (ART), one of Australia’s largest superannuation funds, have secured the rights under a 99-year lease from St John’s College at the University of Sydney to develop a Healthcare and Life Sciences (H&LS) Hub, with a projected end value of $585 million.
The 6,000sqm site at Missenden Road, Camperdown is positioned between Royal Prince Alfred Hospital and the University of Sydney. This location is a strategic juncture of healthcare services, medical research and education institutions, and is within the Camperdown Health, Education and Research Precinct (CHERP). The CHERP is developing rapidly and will foster growth and economic development, innovation, and ultimately, create new and stronger partnerships across some of Australia’s leading medical institutions and organisations.
The Missenden Road facility will encompass 30,000 sqm of NLA. The building is being designed to accommodate a range of uses which could include an acute private hospital, consulting suites, specialist medical occupiers such as pathology and diagnostics, education and medical research / life sciences organisations.
The project is a 50-50 joint venture between the ISPT Core Fund and ART, via a mandate with ISPT.
ISPT, as development and investment manager for the property, is aiming to lodge a Development Application in Q1 2025 ahead of estimated practical completion in 2029.
Demand for healthcare services is expected to grow significantly in accordance with Australia’s ageing population; according to The University of Sydney, 22 per cent of Australians are expected to be aged over 65 by 2026 – a sharp increase from 16 per cent in 2020, which was already double the 8.3 per cent in the early 1970s.
As the population rapidly ages, The University of Sydney also expects Australia’s health spending to more than double to $270 billion by 2035, underpinning ISPT’s view that healthcare and life sciences is a strategic, defensible asset class with long-term upside.
Missenden Road is ISPT’s third H&LS project bringing the total healthcare-related portfolio to $1.4 billion including the Health Translation Hub at UNSW in Sydney and Brenan Place, within St. Vincent’s Fitzroy Hospital in Melbourne. ISPT’s goal is to expand its portfolio via diversified exposure to both public and private health services, education and medical precincts, research facilities, seniors living and care, and life sciences.
Australian Retirement Trust expects to see an increasing demand for investment in quality healthcare services in the future. The Fund believes investment opportunities in this sector provide strategic diversification benefits and help to deliver strong long-term returns for members.
Quotes attributable to Jason Lourensz, Head of Development, Healthcare, Life Sciences and Education at ISPT:
“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.
“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.”
Quotes attributable to Doug Cain, Group Executive, Head of Funds Management at ISPT:
“ISPT Core Fund is pleased to be co-investing alongside ART in this exciting opportunity. 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, this transaction demonstrates our ability to bring in capital partners to execute on our sector strategy.”
Quotes attributable to Mark Lee, Senior Portfolio Manager – Head of Real Estate at ART:
“Identifying and acting on market trends and conditions is critical to making informed investment choices that deliver strong returns for Australian Retirement Trust’s almost 2.4 million 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.
“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.”
Quotes attributable to Professor Robyn Ward, Executive Dean Medicine and Health, The University of Sydney:
“The proposed development of St John’s College’s land will enrich our medical science student experience, providing specialised placement opportunities that will nurture the minds of our future medicine and health leaders. The Healthcare and Life Sciences Hub will also 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.”
For further information please contact:
Nicole Grove
General Manager, Communications
E: ngrove@ispt.com.au
M: 0427 916 166
