Dexus completes $250 million equity raise for Health Fund

Dexus Healthcare Property Fund has successfully completed a $250 million equity raise, attracting new investors to the Fund.

The equity raise attracted strong interest from existing and new investors, both international and domestic, with six new investor groups joining the Fund.

In total, DHPF has raised over $850 million from 12 institutional investors and investor groups, including co-investment by Dexus, since its inception in December 2017, supporting the Fund’s growth strategy.

DHPF Fund Manager, Jemma Maddick said: “The successful completion of the equity raise further diversifies our investor base and creates capacity and support for future growth. It demonstrates strong alignment with the objectives of institutional investors looking for exposure to a growing portfolio of unique, large-scale, high-quality healthcare real estate assets in Australia.”

DHPF has also settled on the acquisition of fund-through developments, Spring Hill Medical Centre and Herston Car Park, for an initial payment of $31.5 million at a forecast on-completion yield above 5.0%.

These properties are located within separate established health precincts in Brisbane. Since announcing the transaction on 30 June 2021, Spring Hill Medical Centre has been leased to a day hospital operator as anchor tenant, resulting in the property being 65% pre-leased, and Herston Car Park has been 100% leased to Silverstone Developments.

Following the settlement of this transaction, the as-if-complete value of DHPF is circa $1.4 billion.

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About Warwick Petschack

Warwick has over 25 years of property investment and management experience. Principally responsible as Managing Director for Capital Management Australia and Joint Managing Director for Chauvel Capital Partners and Editor of Australian Property Markets News.

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