DHPF completes $250 million equity raise, attracting new investors

14 December 2021

DHPF completes $250 million equity raise, attracting new investors

Dexus Healthcare Property Fund (“DHPF” or “the Fund”) today announced that it has successfully completed a $250 million equity raise, attracting new investors to the Fund.

The equity raise attracted strong interest from existing and new investors, both international and domestic, with six new investor groups joining 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, supporting the Fund’s growth strategy.

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.”

DHPF 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.

Following the settlement of this transaction, the as-if-complete value of DHPF is circa $1.4 billion¹.

Footnotes

1. Includes estimated on-completion value of $230 million for DHPF’s 50% interest in Australian Bragg Centre, Bethesda Clinic at an estimated on-completion value of $58.3 million (100% DHPF) and Spring Hill Medical Centre and Herston Car Park at an estimated on-completion value of up to $130.7 million (with the final value dependent on the Weighted Average Lease Expiry for Spring Hill Medical Centre achieved at Practical Completion).