This article is from the Australian Property Journal archive
FOLLOWING its $220 million equity raising, the $1.8 billion Dexus Healthcare Property Fund has acquired the Southport Private Hospital for $51 million.
Located in Southport, on the Gold Coast, the private hospital is a 90-bed mental health and rehabilitation facility operated by Ramsay Health Care.
DHPF fund manager Jemma Maddick said the acquisition will increases the fund’s exposure to an attractive and growing sector, while supporting the delivery of essential health services to the Southport community.
“This investment is in line with the fund’s strategy of securing core, CPI linked, long WALE, high-quality healthcare assets leased to blue-chip operators in key areas with high demand for healthcare services. The 20-year lease provides income security, backed by Australia’s largest private hospital operator, Ramsay Health Care.
“DHPF continues to attract capital, enabling it to execute on strategic growth opportunities. We are seeing an increasing number of quality investment opportunities presenting themselves and as a leader in the sector we are well capitalised and credentialed to continue to diversify the fund,” said Maddick.
Dexus’s executive general manager of funds management Deborah Coakley said the fund’s growth mandate leverages, and is fundamentally underpinned by, strong sector and demographic trends including an ageing and growing population.
“Investors in our flagship healthcare fund benefit from high quality healthcare property benefiting from long-term demand for quality healthcare services, with Australia’s health spending projected to continue to grow as a percentage of GDP over the next 40 years. These trends and recent government modelling underscore the need for private capital to be invested to support our communities.”
This is the first transaction by the fund after its fully subscribed $220 million equity raise in July.
The fund has now raised $1.3 billion from 16 institutional investors since its inception in December of 2017, including a $250 million raise at the end of 2021.
Earlier this year the fund acquired a 9.95% interest in Celsus Holding Pty Ltd, the consortium that manages and maintains the Royal Adelaide Hospital alongside Dexus Community Infrastructure Fund and Dexus Core Infrastructure Fund.
