This article is from the Australian Property Journal archive
DEXUS Healthcare Property Fund (DHPF) has acquired the Arcadia Pittwater Private Hospital and day rehabilitation facility, while HomeCo’s new healthcare REIT made its ASX debut to a huge investor welcome.
Increasing institutional and investor demand for healthcare investments saw the Healthcare and Wellness REIT (HCW) share price surge from the $2 issue price to $2.32 at close.
HomeCo, which holds a 20% stake in HCW, raised $650 million for the trust following stronger than expected interest. It floated with a portfolio valued at $555 million across 27 assets including hospitals, medical clinics, childcare centres and aged care facilities. A $500 million unlisted HealthCo fund will be launched later this year.
Meanwhile, DHPF has grown its funds under management to over $1.3 billion across nine assets with its purchase of Arcadia Pittwater, which follows circa $600 million of healthcare acquisitions in last financial year.
Dexus’s healthcare fund paid $50.5 million off-market for the five-level private sub-acute rehabilitation hospital, located in Warriewood in Sydney’s Northern Beaches.
Completed in 2018, the hospital was purpose-built for Arcadia Health Care with 85 beds, consulting suites, physiotherapy space and a hydrotherapy pool.
It is fully leased to Arcadia Health Care with more than 26 years remaining on the term. There is an opportunity under the current DA for future brownfield expansion.
“Arcadia Health Care is a well-established healthcare operator, and we are pleased to welcome this new relationship onto the Dexus platform,” DHPF fund manager, Jemma Maddick said.
“This acquisition will deliver another quality asset with a stable income stream for DHPF and continues our strategy to grow and diversify the fund through the acquisition of high-quality developments and stabilised healthcare assets.”
DHPF closed the financial year with the $130 million acquisition of the Spring Hill Medical Centre in Brisbane. The acquisitive fund had just bought the Bethesda Clinic fund-through development in Perth, while in April it paid $138.7 million for the Manning Building and Building 4 at the Monash University Parkville Campus in Melbourne, home to the university’s pharmaceutical sciences faculty.
Also, its North Shore Health Hub in St Leonards reached completion, and last year it bought into the Australian Bragg Centre in Adelaide in a $446.2 million deal, and College Junction in Brisbane.
“We welcome the acquisition of Arcadia Pittwater by Dexus, with whom we share a vison for the delivery of premium health care assets and best in class clinical outcomes,” Arcadia Health Care CEO Harry Pannu said.
