Depth of knowledge about sector-specific challenges and solutions
Government and social infrastructure
We have especially strong expertise in areas where government and social infrastructure projects intersect. Challenges driving change and opportunities in this sector include:
- Population growth – growth in our major cities is creating the need for new and renewed social infrastructure projects. However, government funding alone is not sufficient to meet this need. Governments are looking for new, cost effective ways of delivering services, including through the private sector.
- Funding – as government expenses continue to rise, it is essential to increase the total pool of funds available for social infrastructure projects, in particular through private sector investment. Government projects must be delivered through innovative thinking, where reduced long-term reliance on government subsidies is a key influence in decision-making.
- Competitive markets – increased competition drives improved performance and services. It is often possible to structure social infrastructure solutions in a way that encourages competitive markets and delivers supplementary revenue streams, while maintaining the service quality expected by the community.
- Governance – integrated planning, transparent project selection and stakeholder consultation are essential to achieving the best outcomes for government and the community. These factors should be central to government strategic thinking, direction and decisions.
- Best practice – the most successful social infrastructure projects are delivered through best practice procurement and delivery, while also considering whole-of-life asset management to reduce long-term subsidies by government.
- Ageing asset portfolios – many government assets are ageing. To maintaining bottom line value, governments need to think innovatively about adaptive re-use of these assets. This involves identifying how ageing property and infrastructure can be adapted to serve emerging community needs and create revenue streams. If that is not viable, it involves identifying the most effective disposition strategies.
We work with federal, state and local governments to overcome challenges in the government and social infrastructure sector, and provide workable solutions that improve asset values while reducing long-term reliance on government subsidy.
Health and ageing
We have extensive experience in the health ageing sector. Challenges driving change and opportunities in this sector include:
- Ageing population – as our population ages, the need for good aged care services is increasing. A key challenge is modelling to identify movement between independent living and aged care facilities to understand future needs, costs and opportunities within the sector while adapting to regulatory change. As a significant proportion of people begin moving from independent living to aged care, costs are becoming clearer and regulations are changing in line with the shift in the health and aged care market.
- Rising expectations – people expect a better level of care. They also expect current technologies to keep in touch with family and friends and communicate with care providers. These changing expectations are driving private sector health services. This presents challenges for how governments provide services and for the cross-over between public and private sector services.
- Innovative approaches – health and ageing services need to be increasingly innovative and flexible. For example, governments and industry experts acknowledge that home-based care will need to account for a larger proportion of the aged care market into the future. It is also clear that functional planning for health care facilities is necessary to improve efficiency. Adaptive re-use of existing assets can provide opportunities for improved services and growth in the sector.
We work with all levels of government, the private and not-for-profit sectors involved in health and ageing to address challenges and identify solutions to improve asset values and deliver sustainable outcomes that make a positive difference for the community.
Through our work with investors in large-scale retail developments we know that challenges driving change and opportunities in this sector include:
- Online retail – online shopping is changing the way traditional retail services are delivered. Consideration of and innovation around smaller stores and distribution systems are key to ongoing lifecycle.
- Bottom line returns – a tougher market and increasing development costs result in reduced yields. Delivering smart, cost effective assets is critical to the continued success of the retail industry.
- Social interaction – Connection and a sense of place are critical success factors for developments. Creating such places ensures the developments attract new patrons and extends the time they spend there.
- Access – with increasing demand on traditional transport modes and increasing car parking costs, co-location and interaction with alternative forms of transport are key considerations.
- Ageing asset portfolios – owners must ensure that offers are current and in step with current market expectation. Continual improvement and refresh is required to maintain and grow target markets.
We work with institutional and private investors to deliver developments that respond to community need while providing measurable returns.
In this sector we are seeing the following challenges driving change and opportunities:
- Viable projects – people’s expectations are high, particularly for residential developments. This is increasing the need to find new markets to excite buyers.
- Mixed use – there is demand for, and a range of challenges associated with, assets that successfully integrate residential and commercial use.
- Active developments – developments that create active and dynamic zones or spaces attract interest and create places where people want to live, work and socialise. Reinvigorating areas through innovative and adaptive re-use is one way of creating such active developments.
- Student accommodation – there is a need for creative, cost effective student accommodation to be integrated within residential and educational precincts.
We work through these challenges with governments and the private sector to identify solutions that improve the value of assets and deliver sustainable outcomes for the community.