ISPT, HESTA and UniSuper are partnering with UNSW Sydney to develop the circa $600 million Health Translation Hub (HTH) project in the heart of the Randwick Health and Innovation Precinct.
Led by investor and developer Plenary Group, the deal will see ISPT, HESTA and UniSuper co-invest 33.3% each.
The new 15-storey health education and research building will span a net lettable area 35,600 sqm, supported by an initial 20-year commitment from UNSW to occupy 65% of the available space.
The remaining area within the building will be open to industry within the health, research and education sectors.
The HTH asset will form an integral part of the establishment of one of Australia’s pre-eminent health precincts.
Anchored by public health facilities, and a significant $1.5 billion investment from NSW Government, the precinct is set to attract further investment and new tenants in the resilient health, education and research sectors.
The development application managed by UNSW was granted State Significant Development Application (SSDA) consent in 2021.
“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.
“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.”
HESTA CEO Debby Blakey said the super fund had a proud track record of long-term investment in health and life sciences, supporting jobs and innovation in sectors 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,” Blakey 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 Chief Investment Officer John Pearce said the investment would 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,” Pearce 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.”
Construction of the HTH is forecast to begin in 2023, with completion due in 2025.