Sustainable healthcare property
Dexus Healthcare Property Fund (DHPF) is lowering emissions in the Australian healthcare sector through the development and operation of sustainable healthcare property.
The global pandemic has placed health and wellbeing at the forefront of everyone’s minds and turbocharged the demand for sustainable healthcare property. DHPF is helping meet that demand with Australia's first portfolio of healthcare assets that has a sustainable focus.
Traditionally viewed as an alternative real estate asset class, healthcare assets are now valued for their core style characteristics, namely the income stability provided by long-term leases to well-credentialed operators. With more than 20% of the Australian population forecast to reach 65 years of age and over by 2060, the underlying demand driver of a growing and ageing population has made this sector more attractive to investors.
Capitalising on growing investor interest, Dexus identified healthcare as a key growth sector launching DHPF in 2017 and has grown the fund to over A$1.3 billion including the on completion value of developments. Key assets in the portfolio include Calvary Adelaide Hospital, North Shore Health Hub, St Leonards and Australian Bragg Centre, Adelaide.
There are currently no defined standards for energy efficiency in healthcare buildings although they typically use far more energy than standard office buildings because they often run extended hours, have high hot water consumption, air-conditioning and specialist medical equipment requirements.
From inception, DHPF has maintained a focus on integrating sustainable outcomes through implementing its Clean Energy Policy. DHPF’s Clean Energy Policy underpins the integration of the Dexus Sustainability Approach and ESG principles across the fund. This includes helping to drive design enhancements for its development assets, such as the recently completed North Shore Health Hub in St Leonards on the North Shore of Sydney, and underpins the due diligence activities in relation to energy efficiency for new acquisitions.
A new benchmark in health workspace, North Shore Health Hub has achieved a 6 Star Green Star design rating. The facility includes sustainability features such as a 160 kW onsite solar PV system, energy-efficient building services and thermal massing incorporated in the building fabric, meeting the growing demand for workspaces that cater for the needs of both patients and practitioners in a sustainable environmental way.
In addition to its developments, Dexus applies the Dexus Sustainability Approach to DHPF’s operational assets, such as GP Plus Healthcare Centre, through engaging with facilities management teams to enhance performance.
In the 2021 GRESB global assessment, DHPF was ranked first in the Healthcare – Healthcare Centres category for GP Plus Healthcare Centre in Adelaide, which significantly outperformed the benchmark average for performance and management aspects including energy use, greenhouse gas emissions, water use and building certifications. The fund ranked second in the Developments category for Non-listed Healthcare entities, attributable to the North Shore Health Hub development.
DHPF is targeting a portfolio of net zero carbon outcomes, aligned with Dexus’s net zero target by 30 June 2022. New buildings demonstrate their sustainability credentials through seeking independent green building certifications and will target 5 Star Green Star Design and As Built and Green Star Performance Ratings.
To learn more about DHPF and its portfolio, watch the video below or click here.
DHPF Fund Manager
Unlisted Funds Management