- Located at 31-35 Victoria Parade, Fitzroy
- Medical office building to be circa 12,000sqm
- Will be ISPT's first direct property acquisition in the sector
Industry superannuation fund-backed property investor ISPT and superannuation fund HESTA have announced a joint venture partnership to acquire a 50-year ground lease in Melbourne from St Vincent’s Health Australia.
Located at 31-35 Victoria Parade in Fitzroy, ISPT and HESTA will co-develop an ‘on hospital campus’ medical office building of circa 12,000 square metres in the heart of Melbourne’s healthcare precinct.
The site is zoned for Public Use – Health and Community under the City of Yarra, and is currently occupied by the former Brenan Hall building and an adjacent vacant site, which has been owned by St Vincent’s for a number of years and earmarked for development under its campus masterplan.
“Our deep connection and knowledge of the health sector has been built over many years meaning we’re well positioned to take advantage of investment opportunities like this, that we hope will directly benefit our members through strong, long-term returns while also providing impressive medical office facilities for many St Vincent’s hospital staff,” said HESTA chief investment officer, Sonya Sawtell-Rickson.
ISPT and HESTA will co-invest 50 each, with St Vincent’s pre-committing to lease approximately 5,000 square metres of the building for 10 years, as St Vincent’s Health relocates its existing administration, office, and health services from other hospital and satellite services.
The acquisition will be ISPT’s first direct property acquisition in the healthcare and life sciences sector, with the company noting its industry superannuation fund investors like HESTA and ISPT Core Fund are actively seeking exposure within emerging sectors including healthcare and life sciences in the coming years.
“We like the opportunity to combine the resources and expertise of ISPT, our investors’ aligned capital and our operator partners to ensure ongoing investment into the important healthcare and life sciences sector, which is a major employer and driver of economic activity in Australia,” said general manager, healthcare & life sciences at ISPT, Robert Pepicelli.
“In this case, we are actively partnering with St Vincent’s to continue its valuable work in providing important medical research and health services to Australians.
“We especially like the opportunity to help shape the future-designed workplaces of the numerous and diverse workers within medical campuses, many of whom have their superannuation with HESTA and other investors of ISPT.”
