Dexus Healthcare Property Fund (DHPF) has purchased Arcadia Pittwater Private Hospital (Arcadia Pittwater) and day rehabilitation facility in Sydney.
DHPF acquired the property in an off-market transaction for A$50.5 million.
Arcadia Pittwater is a 5-level private sub-acute rehabilitation hospital located in Warriewood on the Northern Beaches of Sydney. Completed in 2018, the hospital was purpose built for Arcadia Health Care with 85 beds, consulting suites, physiotherapy space and a hydrotherapy pool.
The property is 100% leased to Arcadia Health Care with a weighted average lease expiry of 26.5 years. In addition, there is an opportunity under the current DA for future brownfield expansion.
DHPF Fund Manager, Jemma Maddick, said: “Arcadia Health Care is a well-established healthcare operator, and we are pleased to welcome this new relationship onto the Dexus platform. 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.”
Harry Pannu, CEO, Arcadia Health Care, said: “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.”
This acquisition grows DHPF funds under management to over $1.3 billion across nine assets and follows circa $600 million of healthcare acquisitions in FY21. Dexus Healthcare Property Fund achieved a 12-month total return of 18.1% (post fees) to 30 June 2021.