This article is from the Australian Property Journal archive
GLOBAL wealth manager Real Asset Management (RAM) has announced the launch of a new fund in a joint venture with Singaporean sovereign wealth fund GIC that will target $1 billion of Australian healthcare real estate assets.
The RAM Australia Healthcare Opportunity Fund (HOF) will invest in the healthcare sector and specifically target development opportunities in core Australian markets.
RAM said it will invest a “substantial amount” alongside its new partner through its own balance sheet and its newly launched HOF. It becomes the latest in a string of fund managers that have launched new healthcare real estate platforms as the sector rides a wave of favourable demographic trends including an ageing and growing population.
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.
“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.
RAM already has exposure to the fast-growing sector through the ASX-listed RAM Essential Services Property Fund (REP) and currently manages a portfolio of 28 healthcare real estate assets across Australia valued at almost half a billion dollars, which forms part of RAM’s total $1.6 billion real estate portfolio. Twenty-three of these healthcare assets are held in REP.
“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,” Strotton said.
“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.”
