Dexus raises A$250m for healthcare real estate fund

Dexus raises A$250m for healthcare real estate fund

Dexus Healthcare Property Fund (DHPF), an open-ended unlisted Australian property fund, has completed a A$250 million equity raise, attracting new investors both international and domestic to 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.

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.”

Dexus Healthcare Property Fund 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.