Property fund manager ISPT and super fund Australian Retirement Trust (ART) have laid plans for a $585 million healthcare and life sciences hub in Sydney’s inner west after securing the rights to a prime development site under a 99-year lease from St John’s College at the University of Sydney.
The 6,000sqm site at Missenden Road in Camperdown sits between Royal Prince Alfred Hospital and the University of Sydney and is located within the Camperdown Health, Education and Research Precinct (CHERP).
The proposed development will comprise 30,000sqm of net lettable area that could potentially accommodate an acute private hospital, consulting suites, specialist medical occupiers such as pathology and diagnostics, education and medical research and life sciences organisations.
The Camperdown project is ISPT’s third in the healthcare and life sciences space and will take its 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.
The latest project is a 50-50 joint venture between the ISPT Core Fund and Australian Retirement Trust, via a mandate with ISPT which will act as development and investment manager for the project.
ISPT anticipates that it will lodge a development application for the project in the first quarter of 2025 with the fund manager targeting completion in 2029.
“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,” says Jason Lourensz, head of development for healthcare, life sciences and education at ISPT.
“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.”
The development will leverage an expected surge in demand for healthcare services in line with Australia’s ageing population. The partners note that University of Sydney research forecasts Australia’s health spending will more than double to $270 billion by 2035.
The research underpins ISPT’s plans to expand its existing healthcare-related portfolio via diversified exposure to both public and private health services, education and medical precincts, research facilities, seniors living and care and life sciences.
“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,” says Mark Lee, senior portfolio manager and head of real estate at Australian Retirement Trust.
“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.”
Lees says the super fund’s co-investment with ISPT at Camperdown will boost a growing suite of investments it holds 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,” he says.
The University of Sydney has welcomed the proposed Healthcare and Life Sciences Hub as a key facility within the CHERP and the strategic role it will play in supporting the university's health and research programs.
“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,” says Professor Robyn Ward, executive dean of medicine and health at The University of Sydney.
“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.”
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