Originally appeared in Adviser Voice.
RAM Australia Healthcare Opportunity Fund (HOF) has achieved a “Recommended” rating from Core Property Research, in recognition of its potential to deliver above-average risk-adjusted returns.
HOF is an open-ended unlisted property fund targeting healthcare development opportunities. Through asset repositioning and development, the fund aims to build a portfolio of high-quality healthcare assets with strong tenant covenants and long leases in major urban and suburban locations across Australia. The fund is currently open to new and existing investors through a $50 million capital raise, targeting a 3-year IRR of 16–18% per annum.
“The RAM Australia Healthcare Opportunity Strategy offers investors rare access to the scarce and defensive healthcare real estate asset class. We are delighted that Core Property Research has recognised HOF’s strengths, including its high-calibre management, governance, asset quality, and RAM’s ability to deliver above-average risk-adjusted returns,” said Mr. Scott Kelly, RAM Group CEO.
The RAM Real Estate team has over 160 years of combined experience and a proven track record in the healthcare real estate sector which has been built up over the last decade in complimentary strategies. Kelly noted RAM envisions the potential to deploy in excess of $1 billion in this sector in the near term, leveraging its expertise and established relationships with operating partners to secure superior outcomes for investors.
Core Property’s report highlighted Australia’s expanding and aging population, driving increased demand for healthcare services. The rise in non-communicable and chronic diseases is also shifting the focus towards preventative treatment and disease management, boosting demand for both primary and secondary healthcare facilities.
Peter Folkes, RAM’s Director and Head of Distribution, emphasised that healthcare remains a sought-after sector by institutions both domestically and globally. He mentioned the joint venture with a large Sovereign Wealth Fund, which was also highlighted in the Core Property report, as evidence of strong interest and a testament to RAM’s capability.
“The healthcare property sector has proven to be defensive through economic turbulence over the last four years, underpinned by strong demand fundamentals, delivering portfolio diversification and returns uncorrelated to the general economic cycle. Core Property Research’s favorable rating positions HOF as a top choice for investors and advisers seeking strong risk-adjusted returns,” Folkes concluded.