Alternatives Outlook 2024 Report

SIZE OF BUBBLE = RELATIVE SECTOR SIZE

Data Centres

BTR

Private Hospitals

Medical Centres

Self Storage

Student Accommodation

Affordable Housing

Life Science

MHE

Co-Living

SDA

Retirement

Education

Renewables

Leased Agriculture

Aged Care

Film Studios Institutional Interest Levels

Growth Potential

EXPLORING THE LANDSCAPE OF ALTERNATIVES IN 2024

acknowledges the noteworthy surge in both investor interest and the development pipeline across the BTR and data centre markets in recent years. Several both niche and more well-established sectors sit closer to the bottom left-hand corner of the chart due to more modest growth projections. This is not reflective of operational underperformance but rather relatively lower ongoing requirements for new stock based off underlying fundamentals. For example, co-living has seen an increase in activity over 2023 but is expected to remain smaller in size compared to Australia's more established living sectors due to the niche target occupier market. Additionally, the education sector which encompasses various sub sectors including childcare, tertiary education and on campus student housing already has a considerable investable universe with future growth likely to be comparably less on a percentage basis compared to currently smaller but emerging sectors such as BTR and institutional-grade affordable housing.

There is a significant amount of diversity across the Australian alternative sectors. Alternative sectors are typically defined as niche sectors that sit outside core institutional real estate (office, industrial and retail). Additionally, there is considerable overlap between RE (real estate) alternatives and what may be considered infrastructure or private equity investments. This is due to the fact that scale investment into many of these sectors also entails significant

operating company (OpCo) exposure.

In the above figure, the Y-axis offers a comprehensive perspective on institutional investor interest across various alternative asset classes, drawing from Cushman & Wakefield’s oversight over investor mandates and general enquiry. Additionally, the X-axis represents Cushman & Wakefield’s outlook on relative sector growth in relation to existing stock. Positioned in the top right hand corner, the analysis

| AUSTRALIA ALTERNATIVES 4

CUSHMAN & WAKEFIELD