ISPT and ART Acquire Site to Develop $585M Healthcare and Life Sciences Hub in Sydney’s Premier Healthcare Precinct
28 November 2024
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 percent of Australians are expected to be aged over 65 by 2026 – a sharp increase from 16 percent in 20201, which was already double the 8.3 percent 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.
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