Real Estate

Real Asset Management (RAM) has a proven track record as a successful acquirer and manager of healthcare, essential services retail and commercial real estate. We manage 42 properties across Australia through the ASX listed RAM Essential Services Property Fund (ASX: REP) and an unlisted portfolios including the RAM Australia Healthcare Opportunity Fund, the RAM Australia Diversified Property Fund, and several Separately Managed Property Syndicates.

0
Assets in healthcare, essential services retail and commercial

A$0B+
Assets Under Management
(Real Estate Portfolio)

0% – 0%+
Target risk spectrum from core-plus to value-add*

0%+
Off-market deal origination through the ecosystem

A$0B+ CAPACITY
28 strong team in place to scale with funds under management

*Since inception, before performance fee – Investors should be aware that past performance is not indicative of future performance. Returns can change, reflecting rises and falls in the value of underlying investments.

RAM Real Estate Products and Platforms

A direct real estate manager with solutions across the risk spectrum.

Target Return

Core + Income Generating
Long WALE

De-risking and Build to
Core Ecosystem

Higher-Order Apha Generation

Listed

Essential Services Property Fund
Target 5-6% yield 7-8% total return
Long WALE with stable and predictable returns
De-risked value-add and development

Healthcare and Essential Services Retail

Unlisted

Diversified Property Fund
Target 5-6% quarterly distributions
Target 7-8% total return
Predictable income streams with lower order development exposure
Positioned for themed opportunities as portfolio diversifies

Commercial and themed opportunities

Unlisted

SMA and Asset Warehousing
Target 10-12%+ total return
Discrete opportunities for investors
Active de-risking and value-add/development opportunities

Healthcare and Essential Services Retail

Core-Plus to
Value-add

Healthcare-led, retail and commercial opportunities
Target 4-6% yield
Target 16-18% total return
Active management and development

Healthcare and Essential Services Retail

Opportunities

Select value-add, development, repurposing, repositioning and special situations
Discrete co-investment opportunities
Target 14%+ total return

Healthcare, Commercial, Retail, Communities, Alternatives

Expected Risk

The RAM Real Estate Ecosystem

A dynamic, energetic and collegiate environment shaped to acquire, manage, de-risk and add-value through a balanced program.

RESEARCH, SOURCE & SCREEN

Network planning approach with our partners
Extensive and ongoing consultation with our investment partners
Screening/risk management with track record of off-market engagement
Strategic mindset combined with a tactical or thematic approach in strategy design
Internal leadership committee to sign-off all deals

EXECUTIVE & ADD-VALUE

Efficient execution of acquisitions, asset plans and development schemes
Specialist and short-list consulting group in in healthcare
In-house expertise in retail master-planning/development and commercial asset management
Vertical lines built around RAM products with dedicated fund managers
Bespoke reporting regime for investors

DE-RISK, STRUCTURE & ALLOCATE

De-risking approach in deal sourcing and execution
A build-to-core culture
Transparent allocation of deals to across RAM’s strategies and mandates
Listed and unlisted solutions including SMA programme and co-investment/mandate design
Flexible time horizons to match client needs

Real Estate Strategies

Our three primary investment strategies provide core through to opportunistic returns on a risk-adjusted basis.

Local Convenience Based Retail Assets

Why this sector?

Local Convenience Based Retail Assets

Convenience retail assets, focused on non-discretionary spend retailers offers a resilient, defensive cashflow that is marginally affected by economic downturn or global health disasters.
Local convenience assets are typically anchored by supermarkets, leased to such operators as Coles, Woolworths and IGA, offering a strong national tenant covenant with strong footfall generation.
Neighbourhood assets have recently moved to the forefront of institutional and private investment. Growing popularity has been driven by major’s and non-discretionary retailersʼ contribution towards total income, which offers sustainable future income growth.
Due to limited exposure to apparel and discretionary spend, neighbourhood assets are more desirable than their larger counterparts, being sub-regional and regional retail assets.
Neighbourhood retail assets have remained less impacted by COVID-19 and the push to online shopping. Valuations for these assets have remained stable, underpinned by strong investment interest in resilient retail assets, as evident by several recent transitions settled during COVID-19.
The push towards essential services and neighbourhood retail assets will remain a key investment driver given the limited volatility evidenced during COVID-19.

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Medical / Healthcare Assets

Why this sector?

Medical / Healthcare Assets

Over the last 15 years, the healthcare / medical property sector has experienced low volatility when compared to traditional real estate asset classes, while generating strong returns.
Healthcare is a largely inelastic, non-discretionary expenditure type limiting exposure to negative macro-economic factors.
The sector has undergone a secular shift, with increased non-cyclical demand for core medical services.
An ageing population, increased life expectancy and increased rates of chronic disease are driving increased demand for acute and long-term healthcare.
Australians are spending more money, and a greater proportion of their income, on health services than ever before with $201bn spent in 2019-20, equating to 10% of Australiaʼs GDP. Expenditure has grown at an average of 4% per annum for the last 20 years.
The healthcare sector is generally characterised by resilient and consistent income profiles, supported by State and Federal governments which typically account for 60% of all funding.
The sector benefits from a stable profile of tenants due to factors including minimal leasing turnover, government support, location dependency, purpose-built assets, and co-location in hubs. Increasing consolidation of tenants is further improving covenants.

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Commercial Office Mandates

Why this sector?

Commercial Office Mandates

Office leases are typically longer in tenure. Most anchor tenants sign 10 year leases with in built annual income increases not exposed to market conditions like residential.
Lease covenants are normally more secure with for example corporate or government tenants.
Risk-adjusted long term commercial office property returns in Australia are very strong.
Commercial office properties can provide a portfolio with enhanced after tax returns, due to factors such as depreciation, and providing tax deferral benefits.
Returns can be enhanced with active management and suitable levels of leverage.

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RAM Approach to Asset Selection

A top-down and bottom-up approach adopted for asset selection and risk tolerances that contributes to RAM’s longer term strategic and near term tactical views.

STRATEGIC VIEWS

Space demand fundamentals
Locational features including scarcity
Access to current and planned infrastructure
Local and state planning regime
Competitive position and forecast supply review
Replacement cost analysis
Value-add alternatives

TACTICAL VIEWS

Disruptive factors
Macro economic including geopolitical climate
Government policy risk
Demographic drivers including population growth and affluence measures
Capital market and capital demand
Longer term view on space market fundamentals
Financial markets & Australian market demand

Why Invest in Real Assets?

An investment in Real Assets is an investment in real tangible value. Real Assets are physical assets that have inherent scarcity such as real estate, infrastructure and agricultural land. Real Assets represent a compelling opportunity to capture attractive returns propelled by permanent long term structural changes in the global economy, such as urbanisation and the consumption growth of the middle classes in emerging economies.

Achieve effective portfolio diversification.

Increase your potential to achieve a consistent real return above that of inflation.

Enhance potential long-term returns by taking advantage of global trends.