The University of Sydney is putting the finishing touches to a bold $500 million initiative that will target obesity and related diseases.

The project, which relied on the sale of a donated Picasso painting for some of its funding, aims to find new ways to tackle diabetes, cardiovascular disease and other illnesses related to poor nutrition and inactivity.

It will bring together hundreds of scientists and researchers who will try to understand what makes people fat and unhealthy. A major focus will be health issues affecting indigenous people.

A 50,000-square-metre building housing lecture halls and close to 1000 researchers will be the hub of the project, named in honour of Charles Perkins, the first Aboriginal man to graduate from university.

''He is one of those figures that embodies everything we want the centre to be,'' academic director Professor Stephen Simpson said. ''The centre is challenging. It thinks differently. It takes a broader view and ultimately will have an impact.