DHPF acquires high-quality private hospital in Southport, Queensland

Dexus Healthcare Property Fund (DHPF) today announced it has acquired Southport Private Hospital for circa
$51 million. This is the first transaction for the $1.8 billion fund since its fully subscribed $220 million equity raise in July 2023 and increases the fund’s exposure to an attractive and growing sector.

Southport Private Hospital is a 90-bed mental health and rehabilitation facility operated by Ramsay Health Care.

DHPF Fund Manager Jemma Maddick said: β€œWe are pleased to extend our partnership with Ramsay Health Care, through the acquisition of this high-quality hospital, while supporting the delivery of essential health services to the Southport community.

β€œThis 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.

β€œDHPF 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.”

Dexus’s Executive General Manager of Funds Management Deborah Coakley said: β€œDHPF’s growth mandate leverages, and is fundamentally underpinned by, strong sector and demographic trends including an ageing and growing population.

β€œInvestors 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.”

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