Dexus settle Healthcare Hub deal

28 September 2019

Dexus announced in early September the sale of the NorthShore Health Hub to its newly formed Healthcare Wholesale Property Fund (HWPF).


Stage 1 pf the North Shore Health Hub is currently under development at 12 Frederick Street, St Leonards and will comprise a state of the art healthcare facility across 16,000 square metres.


The project is expected to cost $224m. Approximately 50% of the facility has already been pre-committed to Ramsay Health Care, North Shore Radiology and GenesisCare.


The deal with the HWPF has been structured as a fund through and take out with the land being transferred at fair value up front.


The land transfer was recorded last week at a value of $52.7m with the balance of the proceeds paid across a number of fund-through instalments during FY20 and FY21, as part of a development management agreement.


The deal will provide Dexus with an $18-$22m pre- tax profit.