This article is from the Australian Property Journal archive
DEXUS’ Healthcare Wholesale Property Fund has attracted $70 million from a new domestic institutional investor, and at the same time acquired the College Junction medical complex in Brisbane, taking its portfolio value to $654 million.
College Junction, at 695 Sandgate Rd in the inner northern suburb of Clayfield, was completed in 2017 and accommodates national radiology practice Qscan’s head office, radiology clinic and other healthcare tenants.
The fully leased building has a net lettable area of 3,118 sqm across three floors, plus a basement carpark, and has a weighted average lease expiry of 8.8 years.
Dexus executive general manager, funds management, Deborah Coakley said the acquisition supports the growth of the portfolio, and diversifies the portfolio by location, tenant and healthcare asset type.
The transaction is expected to settle in November 2020.
The open ended, unlisted healthcare fund was announced in 2017 with intentions of holding up to $800 million, and which was seeded by assets including the Calvary Adelaide hospital.
It has also welcomed a new investor.
“This new equity provides HWPF with additional capacity to diversify and grow the fund’s portfolio of high quality healthcare assets and demonstrates the investment strength of the healthcare asset class,” Coakley said.
Last year, Employees Provident Fund Malaysia recently made a $100 million investment into the fund, facilitating its acquisition of the first stage of the $1 billion North Shore Health Hub in Sydney from Dexus.
Dexus will continue manage the development that comprises a 16,000 sqm healthcare facility. It expects the development to generate revenue of circa $224 million, retaining exposure to the property via its ownership in HWPF.
Shortly after the acquisition, Dexus’s joint venture partner in HWPF, Commercial & General exited the fund to recycle capital ahead of undertaking construction of the southern hemisphere’s first proton therapy centre, the $320 million SAHMRI II development in Adelaide.
HWPF achieved a one-year return of 10.9% as at the end of June.
