State Library Victoria, Melbourne – March 11, 2022
The rise in private investors making direct investments in Healthcare and Social Infrastructure property is being accompanied by an increased demand for industry insights.
CBRE’s Australian Health and Social Infrastructure team hosted over 200 Investors and Industry professionals outlining the sector’s long-term benefits and returns that come with ownership of underlying real estate.
Some key learnings from the seminar were:
- Continued yield compression forecast for healthcare and social infrastructure assets in 2022
- Increased investor appetite as a result of reduced supply volume and rise in construction cost
- Record breaking levels of vacant aged care transactions and continued industry consolidation
The CBRE team’s experts, hosted by CBRE Executive Managing Director (Victoria) Dean Hunt, were accompanied by industry panellists from Mecwacare, Australian Unity, ISPT, and Perfect Practice.
The sector has traditionally been dominated by seasoned property moguls and REITs, but Australia’s growing and aging population is driving interest in healthcare, education, childcare and aged care assets.
“The Social Infrastructure asset class is proving incredibly resistant, experiencing unprecedented growth over the past few years, with unparalleled yield compression,” CBRE’s Sandro Peluso said.
“Now a popular investment asset class, investors are attracted by long-lease terms to operators offering essential community services, which are also underpinned by Government funding.
The involvement of CommercialReady as a major sponsor of the event was a key indicator of the importance for Industry partners to be involved in such events.
Michael Bevilacqua, State Manager, CommercialReady said:
“The insights delivered were key for us to understand where the market is moving and how investors are interacting with the asset class, by understanding this it will be a key factor in our continued evolution and creating a best in class experience for investors to seek out investments of this calibre, we were proud to be a major sponsor of the event and look forward to further collaboration with CBRE.”
