This article originally appeared in Daily Bulletin.
Australian asset manager Real Asset Management (RAM) has announced the launch of the RAM Australia Healthcare Opportunity Fund (HOF), which will joint venture with a large South-East Asian Sovereign Wealth Fund.
The strategy will invest in the healthcare sector and is specifically targeting development opportunities in core Australian markets. RAM will invest a substantial amount alongside its new partner through its own balance sheet and its newly launched HOF.
“We are very pleased to broaden our reach into the healthcare sector with a major global capital partner,” said Matthew Strotton, RAM Executive Director and Head of Real Estate.
With a proven track record in the healthcare real estate sector through the ASX-listed RAM Essential Services Property Fund (ASX: REP), Strotton stated that RAM will leverage its experience, expertise, and established relationships with operating partners to provide actively managed opportunities to investors through the repositioning and development of high-quality healthcare assets.
“RAM’s objective has been to position for a wider range of risk assets and to create synergy in operations, which will complement our flagship listed vehicle REP. We have expanded our development and deal origination capabilities and see this as a natural progression for RAM and our investors.”
Over the last 20 years, health expenditure has increased from $91 billion to $220 billion, with an average growth rate of 4.0% per year, and the sector remains sought after by institutions. With healthcare continuing to display strong long-term fundamentals, RAM envisions the potential to deploy in excess of $1 billion in this sector in the near term.
“Much of our deal origination is derived from the strong relationships and bottom-up approach that we adopt with our operating partners. Understanding and respecting their space needs and those of the communities they operate in are central to our day-to-day management.” Strotton said.
RAM has been actively investing in the sector since 2018 and currently manages a portfolio of 28 healthcare real estate assets across Australia valued at almost half a billion, which forms part of RAM’s total $1.6 billion real estate portfolio. Twenty-three of these healthcare assets are held in REP.
The RAM Australia Healthcare Opportunity Fund aims to be at the forefront of the evolving healthcare landscape, supporting the increasing demand for healthcare facilities and strengthening the resilience and growth potential of the Australian healthcare real estate market.