02 Sep 2019

Sale of North Shore Health Hub to HWPF contributes to FY20 and FY21 trading profits

2 September 2019

Sale of North Shore Health Hub to HWPF contributes to FY20 and FY21 trading profits

Dexus today announced that it has exchanged contracts to sell the North Shore Health Hub, Stage 1 currently under development at 12 Frederick Street, St Leonards, which will generate trading profits for Dexus in FY20 and FY21.

Dexus has sold the property on a fund-through basis to Healthcare Wholesale Property Fund (HWPF) and will continue to manage the development for total revenue of circa $224 million1. The North Shore Health Hub comprises a state of the art healthcare facility across 16,000 square metres with 50% of the facility already pre-committed.

Dexus retains exposure to the property via its ownership in HWPF.

The sale is expected to contribute circa $18-22 million2 in trading profits pre-tax, which will be realised across FY20 and FY21, with the amount for each financial year dependent on the progress of the development and leasing.

Darren Steinberg, CEO of Dexus said: “We are pleased to have been able to work with HWPF to secure another high quality healthcare asset. Dexus retains an exposure to this facility via our interest in HWPF, while generating trading profits for Dexus investors.”

1 Land will be transferred at fair value, with settlement expected by mid-October 2019. The balance of the proceeds reflects the development spend under a development management agreement that will be paid across a number of fund-through instalments during FY20 and FY21.

2 Expected trading profit reflects a potential range of assumptions regarding leasing and incentive outcomes as well as timing of achieving key milestones.

 

Dexus Investor