- The building, which will be located on the corner of High and Botany streets, will be 15-storeys tall and will span a net lettable area of 35,600 sqm
- UNSW will occupy 65% of available space under an initial 20-year commitment
- The superfunds say the project represents a long-term opportunity for its members
A partnership that consists of property fund manager ISPT, and superannuation funds HESTA and UniSuper, as part of the Plenary Health consortium led by Plenary Group, have concluded their transaction to form a partnership with UNSW Sydney that will develop the circa $600 million Health Translation Hub (HTH) project.
The deal will see the three key players partner and co-invest 33.3% each in an ISPT investment vehicle holding the majority of the investment.
This news follows a highly competitive tender process that involves both domestic and international investors and developers seeking a rare health, research and education opportunity in the heart of the Randwick Health & Innovation Precinct.
UNSW to occupy majority of space
The precinct itself is on land owned by the Health Administration Corporation (HAC) which is then leased to UNSW. The university will enter into a project deed with Plenary Health Consortium (PHC) to design, develop, fund and issue a sub-ground lease to own the property upon completion.
The building, which will be located on the corner of High and Botany streets, will be 15-storeys tall and will span a net lettable area of 30,927 sqm. It will be supported by an initial 20-year commitment from UNSW, which will occupy 65% of available space.
The remaining space will be open to those within the research, health and education sectors.
One of Australia’s pre-eminent health precincts, it will be anchored by various public health facilities and a $1.5 billion investment from the state government.
Hansen Yucken will be the design and construction partner, with Archiectus as lead architect.
The new hub will be physically integrated via dedicated sky bridges, which will connect the UNSW Kensington Campus, the Randwick Health Campus and the future Minderoo Children’s Comprehensive Cancer Centre.
Project meets environmental and long-term investment goals, says stakeholders
As part of its commitment to sustainable investments, the partnership has targeted environmental objectives such as a 6-Star Green Star Rating, net zero carbon emissions, full electrification, 100% renewable energy, PV solar installation and a 5.5 Star NABERS Energy rating.
Construction of the HTH is forecast to being next year, with completion due 2025.
“Strong market fundamentals in the healthcare and life sciences sector are the drivers behind ISPT’s growing portfolio in this space, driven by forecasted long-term sector growth and low volatility compared to alternative sectors,” said Robert Pepicelli, General Manager, Healthcare & Life Sciences at ISPT.
“This latest partnership reflects our desire to invest in real estate for a purpose in terms of health, medical research and education; allowing ISPT to play a pivotal role in one of NSW’s largest co-located healthcare anchored precincts.
“Following our recent joint venture partnership with HESTA (through its healthcare property mandate with ISPT) to acquire a 50-year ground lease from St Vincent’s Health Australia earlier this year, this project aligns with our growing capability in the space as we focus on creating partnerships that combine the resources and expertise of ISPT with our investors and operator partners to shape the future of the important healthcare and life sciences sector.
Robert Pepicelli, General Manager, Healthcare & Life Sciences at ISPT
“The NSW Government’s considerable investment in the Randwick Health & Innovation Precinct, together with UNSW’s clear ambition to address some of society’s most important health challenges, will see the HTH positioned at the forefront of international health research and education, fostering the translation of research into commercial outcomes and driving further investment in the precinct which ISPT along with its joint investment partners is excited to be a part of,” he said.
Debby Blakey, CEO at HESTA, added that HESTA has a track record of long-term health and life sciences investments, supporting the sector where many of their members work.
“This exciting investment in what can be a critical health, education and research precinct can help deliver strong, long-term returns for HESTA members, while supporting future jobs, and growth in our economy and better health outcomes for many in our society,” she said.
“This is the latest investment made through HESTA’s $430 million health care property mandate, and we continue to look for opportunities in the sector, which is expected to see some of the strongest jobs growth over the next four years.”
UniSuper’s John Pearce said the team is delighted to be an investor in the consortium, noting its environmental credentials.
“The investment will target significant sustainable objectives including a 6-Star Green Star Rating and a 5.5 Star NABERS Energy rating. This is a natural fit for UniSuper given our rich heritage in the higher education and research sector,” he said.
“UniSuper has a strong cash position, and we continue to look for quality investments that help our members grow their retirement savings. We’re confident this will provide a great return for our members, and pay dividends in research outcomes for many years.”
ISPT’s Luke Briscoe said the newly established joint investment partnership is central to ISPT”s renewed group strategy.
“Our partnerships platform is focussed on bringing likeminded investors together to increase their direct exposure to unique investment opportunities in specialised sectors; with the HTH offering access to future growth companies including biotech, med-tech and research institutes to provide long-term value for our investors,” he said.
“The deal represents a strategic and stable investment through a long WALE to the UNSW, alongside an AA+ rated covenant.
“We are driven to partner with our investors and form compelling offerings that leverage our size and access to market via partnerships, supporting our investors’ aspirations to curate a high performing diversified portfolio.”
UNSW Vice-Chancellor and President Professor Attila Brungs said both the university and the wider community will benefit from the long-term partnership with the HTH and Plenary.
“No single organisation can solve the complex healthcare challenges facing our communities today. UNSW has a unique opportunity to co-locate with our Randwick Health Campus – an opportunity more than 60 years in the making,” Professor Brungs said.
“A state-of-the-art facility, the Health Translation Hub will physically connect UNSW to the hospitals and enable a seamless and integrated work, research and education environment. We will discover unmet clinical needs faster, connect real-world health issues more efficiently to our researchers and industry partners, and facilitate a hands-on learning opportunity for our students.
“Through our partnerships with government, industry and academia, we will revolutionise the way health care is delivered.”
