Health hub an example of how unis can maximise commercial benefits, says developer
To maximise the commercialisation of research, unis should be open to working with the private sector on new styles of real estate, a top developer says.
To best commercialise their research, universities should be open to working with the private sector on new styles of real estate, like complexes devoted to medical research and life sciences.
That’s the view of the developer of the $600m UNSW Health Translation Hub in Sydney.
Tertiary education bodies around Australia are increasingly working with private developers; a Lendlease-led consortium is working with the University of Melbourne on the Melbourne Connect precinct and Charter Hall is opening an engineering innovation hub in Parramatta with two Sydney institutions.
Plenary chair Paul Oppenheim’s call came as a new health and life sciences facility in Sydney being developed by the company in partnership with UNSW Sydney was topped out.
He said the new precinct brought clinicians, researchers and doctors together with private-sector companies so they could generate and commercialise world-class research. Universities were turning to the private sector more often to help them with their property and infrastructure needs, Mr Oppenheim said.
“I think universities are increasingly recognising that they are asset rich or land rich … but also don’t necessarily have the know-how to bring together research, the private sector and the commercialisation potential,” he said.
Mr Oppenheim said the life sciences space was a “perfect intersection” between where big players wanted to partner, with government, public institutions and hospitals – and they were now willing to draw on the private sector to develop and help create value from research.
“They’re obviously good at research, but they’re not necessarily good at clinical applications of research, and ultimately the commercialisation of that,” he said.
“But there is more co-operation with new precincts being set up, particularly in life sciences.
“We’re starting to see a fair bit more of that in Australia. At different places around the country, we’re starting to see universities move heavily into this life sciences space.”
Mr Oppenheim said there were vast pools of superannuation capital but they needed developers to bring projects together. “I think that if the superannuation funds find the right development partners … there’s a great opportunity,” he said.
He said universities were more open to co-operating in order to release value in sites around the country. “We need the universities to recognise the opportunity and bring these opportunities to the market and then let competitive processes play out,” he said.
The Sydney project is being fully funded by Plenary and industry superannuation fund-backed property investor ISPT together with health and education sector superannuation funds HESTA and UniSuper.
Big funds have been weighed down by their exposures to traditional commercial properties, including offices and shopping centres, and have been pushing into new areas ranging from health and education to logistics.
The development is next to the new Prince of Wales Hospital Acute Services Building and is connected to UNSW’s Kensington campus, the new Sydney Children’s Hospital and Minderoo Children’s Comprehensive Cancer Centre.
UNSW has an initial 20-year commitment to occupy two-thirds of the facility for teaching, clinical and research. Confirmed UNSW subtenants include MCCCC and The George Institute for Global Health.
Plenary, as the developer, investor and long-term manager, is leasing the remaining 10,000 sqm to industry, and is looking for like-minded partners to co-locate with the university.
The builders on Wednesday topped out the 15-storey health education and research building although internal works will continue on the site. It will have a net lettable area of 30,927 sqm when complete.
ISPT head of development, healthcare, life sciences and education Jason Lourensz flagged the area’s significance.
“We see the healthcare and life sciences sector as highly strategic and defensible, and we look forward to continuing to grow our portfolio of high-quality, sustainable assets that cater to the needs of future-focused operators,” he said.
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