RAM Australia Healthcare Opportunity Fund
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.
Features include:
- 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 RAM’s listed track record and strict compliance and governance control
Investment Strategy
- Invest in the sought-after healthcare sector
- Targeting a range of development, value-add, and core plus opportunities
- Culture of active management and risk mitigation through depth of operator relationships
- Integrated approach with in-house development and tenant/partner relationship management
- Significant deal flow pipeline sourced both on and off market
- Operator-led mandates and network planning initiatives
19-21 Middle Street Cleveland, QLD
Status: Settled
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.
20 Nellie Street Nundah, QLD
Status: Under Contract
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 10,418 sqm (GFA) anchored by a top-tier private hospital operator with a new 25-year lease.
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.
Key demand drivers for Australian healthcare real estate
Economic, demographic, and social drivers continue to support the demand for Australian healthcare real estate.
- Population and Life Expectancy
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.
- Chronic Illness
67% of Australian adults are overweight or obese, 14.5% of people aged 18 years and over smoked daily (16.9% of men and 12.1% of women). In 2017-18, 580,000 Australians aged 18 years and over had some type of “heart disease”.
- Government Spending
During 2020-21, spending on health by all governments amounted to $156 billion, which accounted for 15.4% of total government tax expenses and represented 26.8% of government tax revenue.
- Real Per Capita Expenditure
Over the last 20 years, health expenditure has increased from $91 billion to $201 billion, an average growth rate of 4.0% per year, compared to average annual inflation of 2.4% over the same period.
- Per Capita Utilisation
78.6% of people, or 20 million Australians, had a long-term health condition in 2020-21, with 46.6% (11.9 million) reporting at least one selected chronic condition, according to data released by the Australian Bureau of Statistics.
Sources: ABS Census Data 2021, National Health Survey 2020-21, AIWHHealth expenditure Australia 2020-21.
Recent trends in Australian healthcare
Disruptive trends, lifestyle changes and merging technology, make Australian healthcare ever changing.
- Day Surgery
Operating theatres in day hospitals have increased by 56% between 2000-16. Efficiency in surgery is leading to more convenience-based health solutions.
- Mental Health
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 Health
Private episodes of care showed an increase of 7.3% on the previous quarter and up 4.4% over the year, in December 2022.
- Medical Technology
Minimally invasive techniques and advance in anaesthesia result in less tissue damage and post-operative pain and require less time in hospital.
*Gross of fees. Investment returns are not guaranteed. Actual returns may differ from target returns for a range of factors including investment performance, taxation and indirect costs. Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the RAM Australia Healthcare Opportunity Fund. Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT). The Investment Manager for the Fund is RAM Healthcare Property Investment Management Pty Ltd (ACN 667 163, AFSL No. 484263.) This material has been prepared by Real Asset Management Group to provide you with general information only. In preparing this material, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither Real Asset Management Group, Equity Trustees nor any of its related parties, their employees or directors, provide and warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the IM before making a decision about whether to invest in this product.
Real Asset Management (‘RAM’) is an Australian alternative asset manager, providing investment solutions in Credit, Real Estate, and Private Equity markets, for institutions and wealthy families globally.
RAM was founded in 2010 and has a pan-Asia presence of 5 offices in Sydney, Melbourne, Brisbane, Shanghai and Hong Kong. RAM provides more than 15 investment strategies and has a team of over 100 finance professionals managing in excess of A$4.3bn in assets.
We provide a global set of investment solutions through our group companies licensed by the Australian Securities and Investment Commission of Australia (AFSL 484263), and the Securities & Futures Commission of Hong Kong (CE BGL803).
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 17 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 26 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 Australia’s leading private hospital operators, managing and delivering over $350 million of both brownfield and greenfield projects.
Relevant Documents
You should read the PDS, TMD (if applicable) or any Investment Memorandum (or other offer documents) related to this product before making an investment decision. These documents (if available) can be found at https://ramgroup.com/, or if this is a "wholesale investor only" investment, can be viewed by contacting the Product Issuer identified on the aforementioned website.
Statutory Statement
The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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