DHPF acquires high-quality private hospital in Southport, Queensland

7 September 2023

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: “We 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.

“This 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.

“DHPF 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: “DHPF’s growth mandate leverages, and is fundamentally underpinned by, strong sector and demographic trends including an ageing and growing population.

“Investors 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.”