Invest in the highly sought-after healthcare real estate sector
The RAM Healthcare Opportunity Fund (“HOF”) is an open-ended property fund aimed at building a portfolio of premium healthcare real estate assets in Australia through asset repositioning and development. It offers investors rare access to the scarce and defensive healthcare real estate asset class.
Strong capital return over medium term investment horizon.
Low risk “build-to-core” strategy of premium Australian healthcare assets.
Security of capital and liquidity options.
Rare access to the scarce and defensive healthcare real estate.
Invest with confidence given Real Asset Managementʼs (RAM) listed track record and strict compliance and governance controls.
| LOCATION | Metropolitan and larger regional cities in Australia |
|---|---|
| TARGET EQUITY RETURNS* | Targeting 16-18%* total return with 4-6% distribution target post portfolio establishment |
| BORROWING | Targeted gearing of 50% LVR (max 60% at a portfolio level) |
| TERM | Open-ended with quarterly liquidity facility |
| FUND TYPE | Registered, open-ended unit trust |
| UNIT PRICING | Monthly |
| DISTRIBUTION | Quarterly |
| MINIMUM INVESTMENT | $50,000 |
| RESEARCH | Core Property rating : Recommended^ |
The off-market site with development approval for an integrated medical hub was acquired for $6.5 million. The site is located in an underserviced metropolitan growth catchment east of Brisbane. RAM proposes to develop a circa 5,000 sqm medical hub with hospital, specialist consulting, and allied health services integrated over four levels with basement parking. RAM has secured ASX-listed Ramsay Health Care for a ~1,400 sqm day surgery on a 25-year lease.
The off-market medical development opportunity is located in Inner Brisbane, 7 km from the CBD, adjacent to the Queensland Health Nundah community center. The property is currently under construction, with an expected completion in the latter half of 2023. It will serve as a health, medical, and lifestyle precinct over 10,000 sqm (GFA) anchored by a top-tier private hospital operator with a new 25-year lease.
A management team with significant experience in asset and funds management, and property investment and management
Matthew has over 26 years of experience in Global Real Estate markets across real estate development, investment and funds management disciplines.
Prior to joining Real Asset Management, Matthew was a Global Director and Head of Funds Management at QIC Global Real Estate, with responsibilities for Australian and United States capital transactions, wholesale funds and client mandates. As part of the leadership team at QIC Global Real Estate, Matthew oversaw all of the group’s direct and unlisted investment activities and established QIC’s offshore capabilities in the United States. During his 19 years at QIC, Matthew was part of both the development and asset management teams and capital transactions prior to leading the funds management group. Prior to joining QIC, Matthew worked for Lend Lease Development in various development roles in Australia.
Matthew holds degrees in Commerce, majoring in Finance, and Information Technology, majoring in Statistics and Applied Mathematics from Bond University, achieved through a Vice Chancellor’s scholarship.
Sam has over 20 years of experience in Commercial Real Estate having previously worked for CBIC (City of Brisbane Investment Corporation), Vicinity Centres and Urbis.
Prior to joining Real Asset Management, Sam was Portfolio Manager for CBIC overseeing the retail portfolio and heading up the fund and investment analytics function of the business. He worked across all facets including capital transactions, development, asset management, lending, research and fund analytics. Prior to joining CBIC, Sam was a Senior Property Analyst for Vicinity Shopping Centres, the second largest retail landlord in Australia. He was responsible for delivering strategic advice to the development, leasing, capital transaction and shopping centre management teams across the 100 centre national portfolio. Sam was also previously an Associate Director for advisory firm Urbis, specialising in retail shopping centre and mixed use development strategy. Sam managed the delivery of over 200 projects across the private and public sectors.
Sam holds a Bachelor of Business Management majoring in Real Estate and Property Development from the University of Queensland.
Adam has over 25 years of experience in the construction industry across Australia and the UK.
Prior to joining Real Asset Management, Adam was a former Executive Manager of Development and Construction at Healthe Care Australia, one of Australiaʼs leading private hospital operators, managing and delivering over $350 million of both brownfield and greenfield projects.
Andrew has over 10 years of experience in the construction industry. Prior to joining Real Asset Management, Andrew was a Project Manager for Armitage Jones. There he was responsible for delivering large scale projects across a range of asset classes. Andrew holds a Bachelor of Civil Engineering from Swinburne University.
Healthcare is a largely inelastic and non-discretionary expenditure with limited exposure to negative macro-economic factors. The Australian healthcare real estate sector is generally characterised by resilient and consistent income profiles, supported by state and federal governments which typically account for 60% of all funding.
Economic, demographic, and social drivers continue to support the demand for Australian healthcare real estate.
Australians over 65 are forecast to grow at 3.1% p.a. over the next decade. Government data estimates by 2055, average life expectancy will be 95.1 for men and 96.6 years for women.
67% of Australian adults are overweight or obese, 14.5% of people aged 18 years and over smoked daily. 1 in 20 (or 1.3 million) Australians had heart, stroke and vascular disease in 2022.
During 2021-22, spending on health by all governments amounted to $176 billion, which accounted for 20% of total government tax expenses and represented 26% of government tax revenue.
Over the last 20 years, health expenditure has increased from $91 billion to $241 billion, an average growth rate of 4.0% per year, compared to average annual inflation of 2.4% over the same period.
Over 20 million Australians had at least one long-term health condition, with 46.6% (or 11.9 million) reporting at least one selected chronic condition, according to the latest data released by the Australian Bureau of Statistics.
Disruptive trends, lifestyle changes and emerging technology, make Australian healthcare ever changing.
Operating theatres in day hospitals have increased by 56% between 2000-16. Efficiency in surgery is leading to more convenience-based health solutions.
Private mental health hospitalisation increased between 2010-11 and 2020-21 at an average annual rate of 5%. Expenditure increased 4% between 2016-17 and 2020-21.
Private episodes of care showed an increase of 7.3% on the previous quarter and up 4.4% over the year, in December 2022.
Minimally invasive techniques and advance in anaesthesia result in less tissue damage and post-operative pain and require less time in hospital.
A top-down and bottom-up approach adopted for asset selection and risk tolerances that contributes to RAMʼs longer term strategic and near term tactical views.
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