MELBOURNE: The founders of a new $250 million real-estate fund claim they will invest in an emerging new asset class, known as step-down healthcare.

Described as accommodation for those Australians with life-changing injuries— those who cannot live long-term in hospital but equally need out-of-home care — ASA Real Estate Partners claim there is currently little on offer in Australia.

The ASA Equal Living Social Infrastructure Fund will include up to a 10 per cent co-investment from ASA founders Alex Abell, Tim Slattery and Chris Aylward, as well as the client — Equal Living Group.

The new fund will raise $50m in initial equity, aiming for an asset base of more than $250m over a five-year fund term.

The initial portfolio will cover three newly completed centres in Melbourne, fully leased to the Equal Living Group and suitable for people with conditions such as motor neurone disease, multiple sclerosis, quadriplegia and paraplegia.

“Here we see the potential for the asset class which is emerging and not yet supported or priced by institutional capital,” Mr Slattery said. “We see a distinct parallel to healthcare real estate coming out of the global financial crisis in 2010, which was a very profitable investment.

“Great assets, profitable tenants and priced without significant competitive tension.”