The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FIRST RELEASE TICKETS ON SALE FOR URBANITY-25 THE UNMISSABLE EVENT FOR PROPERTY PROFESSIONALS IN THE ASIA PACIFIC
FIRST TICKETS ON SALE FOR URBANITY-25 UNMISSABLE FOR PROPERTY PROFESSIONALS
SEE DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
6
print
Print
OtherTed TabetWed 05 May 21

Dexus Healthcare Fund Surpasses $1bn

833805d4-c504-48a5-b62d-03d36edb6a23

Fresh from raising funds to target properties for its wholesale Healthcare Property Fund, Dexus has secured two life sciences buildings in a Melbourne biomedical precinct.

The two properties, the Manning Building and Building 4 at 399 Royal Parade, were acquired for $138.7 million and are part of Monash University’s Parkville campus.

The buildings are currently home to the university’s Faculty of Pharmacy and Pharmaceutical Science and hold a weighted average lease expiry of 12.4 years.

They neighbour the Royal Melbourne Hospital, Royal Women’s Hospital, Royal Children’s Hospital, Melbourne Private Hospital and St Vincent’s Hospital Melbourne.

The medical property was brokered by CBRE’s Mark Coster in an off-market deal and struck on a yield of 4.5 per cent.

The acquisition by Dexus, the country’s largest office landlord, now pushes the vehicle’s portfolio past the $1 billion in assets under management.



[+] Healthcare Approaches Peak of Cycle
The healthcare property market has rarely been hotter, with developers clamouring for a slice...


The fund (DHPF) currently has five core investors, including the Employees Provident Fund Malaysia, which put $100 million into the fund in 2019.

The executive general manager of funds management at Dexus, Deborah Coakley, said investor appetite for healthcare had ramped up “massively” since DHPF was launched in 2017 as part of an asset diversification strategy by Australia’s largest commercial landlord.

“This transaction continues our strategy to grow and diversify DHPF through the acquisition of high-quality developments and stabilised healthcare assets,” Coakley said.

“There are further opportunities in Brisbane and Perth currently under review.”

The acquisition follows the recent completion of the North Shore Health Hub, a premium healthcare facility in the North Shore Hospital precinct in St Leonards, north Sydney.

Dexus also recently acquired the Australian Bragg Centre in Adelaide’s BioMed City precinct.

Other assets owned by the fund include College Junction in Brisbane, and GP Plus Healthcare Centre and Calvary Private Hospital in Adelaide.

Addressing the group’s quarterly results, chief executive Darren Steinberg said he had been pleased with the continued momentum across the funds platform, as Dexus progresses initiatives in the fund, healthcare and its new opportunity fund.

“Our continued focus on our relationships with third-party capital partners will assist with opportunities we have in the pipeline,” Stienberg said.

Over the recent quarter, the fund raised $125 million in new equity.

Yields in healthcare real estate have been gradually tightening as governments and the private sector recognise the rising need for more efficient and effective models of care to service medical precincts and suburban areas.

Institutional investors have been quick to embrace the once-niche sector which is currently experiencing a shift that has accelerated since the pandemic, while also pivoting their portfolios away from office and retail property.

According to recent forecasts by JLL, the estimated value of real estate in the healthcare sector is between $95 billion and $105 billion, providing plenty of scope for investments of scale.

OtherRetailOfficeLife SciencesHealthcareAustraliaMelbourneSector
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
MONARK co-founders Michael Kark (CEO) and Adam Slade-Jacobson (CIO)
Exclusive

Finding the Sweet Spot: How Monark Built its $2bn Property Empire

Leon Della Bosca
6 Min
Exclusive

Sydney’s Fear of Heights Holding Back Housing

Vanessa Croll
6 Min
North Melbourne Craigieburn HB Land EDM
Exclusive

Tribunal Finding Cruels 1000-Home Melbourne Plan

Clare Burnett
5 Min
Roseville Hycorp EDM
Exclusive

Ku-ring-gai TOD Backflip Slashes 1500 Homes from Under-Way Developments

Clare Burnett
7 Min
Exclusive

Housing Fix Sprint Begins with New Top Planner Pushing 13 Regional Plans

Phil Bartsch
8 Min
View All >
Clarke Hopkins Clarke's rendering of the clubhouse for Levande's Highton seniors living project in Geelong.
Retirement & Aged Care

Seniors Living Plan Revealed for Former Geelong Van Park

Marisa Wikramanayake
MONARK co-founders Michael Kark (CEO) and Adam Slade-Jacobson (CIO)
Exclusive

Finding the Sweet Spot: How Monark Built its $2bn Property Empire

Leon Della Bosca
Labrador Midrise Whiting Street DA hero
Residential

Labrador Scheme Joins Gold Coast Midrise Surge

Phil Bartsch
The latest proposal is for 17 apartments across an eight storey building at Labrador...
LATEST
Clarke Hopkins Clarke's rendering of the clubhouse for Levande's Highton seniors living project in Geelong.
Retirement & Aged Care

Seniors Living Plan Revealed for Former Geelong Van Park

Marisa Wikramanayake
2 Min
MONARK co-founders Michael Kark (CEO) and Adam Slade-Jacobson (CIO)
Exclusive

Finding the Sweet Spot: How Monark Built its $2bn Property Empire

Leon Della Bosca
6 Min
Labrador Midrise Whiting Street DA hero
Residential

Labrador Scheme Joins Gold Coast Midrise Surge

Phil Bartsch
2 Min
Indroo Verso 53 Coonan Street DA hero
Development

Tower Pitched as Brisbane’s Inner-West Regains Steam

Phil Bartsch
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/dexus-parkville-dhpf-heathcare-fund