Our healthcare and education portfolio

Ageing population, rising chronic disease, and increased demand for industry-integrated education drive a growing need for hospitals, aged-care facilities, research institutes and universities to coalesce within precincts or major hubs.

As hospitalisations increase with age, particularly for people aged 65 and over, Australia’s growing and ageing population is driving greater demand to develop innovative models of care. This, in turn, is creating long-term demand for specialised real estate such as hospitals, clinical spaces, labs, and teaching facilities.

Healthcare and education services are less affected by economic downturns due to their inelastic demand. Real estate in these sectors often benefits from long leases with governments, universities, or healthcare operators, creating generally predictable cashflows.

Modern healthcare and education services require purpose-built facilities from research and development laboratories and clinical research centres to teaching spaces and student accommodation. We believe these assets are critical infrastructure, offering investors exposure to properties with high barriers to entry and limited supply.

Innovation precincts foster collaboration between universities, research institutes, and industry. Real estate within these districts benefits from clustering effects, strong tenant demand, and potential long-term growth.

Healthcare and education span multiple sub-sectors including hospitals, life sciences and medical research, universities, training institutes and commercial enterprises, providing investors with diversified opportunities across essential industries.

The healthcare and education sectors are experiencing sustained and accelerated growth in Australia, with life sciences sub-sectors such as pharmaceuticals, MedTech, medical devices and BioTech industries leading the way. Over the past decade to 2025, many of these subsectors have experienced outpaced revenue, enterprise creation and employment growth compared to traditional corporate industries, a trend that is expected to continue.

This momentum is supported by long-term Government funding commitments, including $6.5bn from the Medical Research Future Fund and over $600m in National Health and Medical Research Council (NHMRC) grants in 2025 to underpin future sector development.

Source: NHMRC

The education sector is a cornerstone of Australia’s economy – the Reserve Bank reports the combined health and education share of output is about 13.4% of GDP, with education services alone generating export income – international education revenue reached $51 billion in 2023-24.

Source: RBA Composition of the Australian Economy September 2025 and Department of Education

Underpinned by demographic tailwinds, we invest in tailored facilities that attract aligned tenant-partners who typically commit to long-term leases. Efficient design and disciplined management create synergies between improved operational outcomes for occupiers and sustainable returns for our clients.