This article is from the Australian Property Journal archive
DEXUS has successfully raised $420 million in new equity across two of its funds, Dexus Real Estate Partnership 1 (DREP1) and Dexus Healthcare Property Fund (DHPF).
For DREP1, the raise takes the fund’s investment capacity to circa $1 billion, including gearing, and represents the final close for the fund.
Dexus has also secured two additional opportunities for the DREP1 fund, including 90 Goodchap Street, Noosaville in Queensland and 220 Part 106 Rising Boundary Road, Ravenhall in Victoria.
The Queensland asset is a medical and professional centre, sitting just 650 metres out from Noosa Hospital within the Noosa medical precinct.
The centre includes 7,000sqm of net lettable area across three buildings, with leasing and development upside, with a custom radiation oncology bunker to be built on the site.
Dexus also secured Genesis Care as part of the Queensland acquisition, one of the world’s largest integrated oncology organisations, as a key long-term tenant.
The Victoria asset includes 46-hectares of land in the West Melbourne Ravenhall Precinct, sitting adjacent to Dexus’s Horizon 3023 industrial development.
The property was acquired as a co-investment with Dexus and presents a repositioning opportunity through rezoning and development.
The new acquisitions bring DREP1 up to five investments, with the fund progressing with opportunities in the office, industrial and healthcare sectors in equity and credit.
Meanwhile DHPF’s equity raise was fully subscribed, with its existing investors making up 80% of new capital.
DHPF has now raised over $1 billion from 15 institutional investors since its December 2017 inception, including its $250 million equity raising at the close of 2021.
Equity raised for the fund will go towards further investment in the currently under development Australian Bragg Centre in Adelaide and towards other acquisitions.
“These successful equity raises deliver on our strategic objective to grow and diversify our funds management business, providing capacity for DREP1 and DHPF to execute on their respective strategies,” said Darren Steinberg, CEO at Dexus.
