Podcast
THE PROPERTY DEVELOPMENT REVIEW
SCAN OR CLICK TO LISTEN TO THE INTERVIEW IN FULL 65 MINUTES
SAM BIGGINS
With Rob Langton
PARTNER, NATIONAL HEAD OF HEALTHCARE & LIFE SCIENCES – KNIGHT FRANK
In this interview with Rob Langton, Sam Biggins, discusses Knight Frank’s new Australian, Healthcare & Life Sciences division which focuses on healthcare real estate investments. The division seeks to leverage the robust demand for healthcare real estate, fuelled by factors like elevated investments in the sector, a surge in capital influx, and heightened interest in properties such as clinical medical facilities, seniors’ living spaces, and other healthcare- oriented assets. Sam highlights the significant opportunity in private hospitals, with only about 25% of their asset value securitised, creating potential for institutional and private investors to enter this asset class. Regarding market sentiment, Sam notes that despite challenges like rising debt costs, there is continued demand from established healthcare investors and growing interest from those diversifying their portfolios. Healthcare real estate exhibits lower volatility compared to traditional asset classes like office, retail, and industrial properties. The stability of tenant businesses and the strong demand for healthcare facilities contribute to the sector’s attractiveness. The scope of healthcare and life sciences real estate includes retirement living, aged care, medical centres, hospitals, specialist facilities, and life sciences.
The life sciences sector in Australia has gained momentum in recent years, with increasing interest in investment. Sam discusses a recent transaction involving Regis, where Hesperia acquired a property with plans for a mixed-use medical redevelopment, highlighting the trend of co-locating healthcare facilities with established healthcare precincts. Sam emphasises the importance of population growth, location, and competition in healthcare and aged care investments. He addresses the changing landscape of aged care regulations, the impact of COVID-19, and the evolving preferences for premium seniors’ living. He touches on the funding environment, sale and leaseback arrangements, and the integration of operational and property ownership roles. In the context of the life sciences sector, Sam talks about the demand for co-location with hospitals and academia, creating ecosystems that foster innovation. He notes the need for life sciences facilities to be in proximity to other occupiers to thrive. Sam anticipates growth for Knight Frank’s Healthcare & Life Sciences division, recruiting candidates across the Eastern Seaboard to better serve key markets. He also expects continued asset recycling in aged care, divestment of non-core assets by institutional investors, and opportunities for smaller investors to enter the sector.
September / October 2023 – 9
Powered by FlippingBook