- Dexus (DXS) will invest $180 million into Australian Unity Healthcare Property Trust’s (AUHPT) $320 million capital raising
- $120 million will be raised in an entitlement offer to existing unitholders and $20 million placement to Australian Unity Strategic Holdings
- AUSH will make a premium cash offer (PCO) to purchase units from existing investors in AUHPT
- Dexus says today’s announcement will not impact its existing healthcare property fund, which will operate independently
- Dexus shares are down 0.28 per cent on the market today, dropping to $10.71 per share as of 12:07 pm AEST
Dexus (DXS) has made a $180 million investment in Australian Unity Healthcare Property Trust’s (AUHPT) $320 million capital raising.
AUPHT will raise $320 million through an approximate $120 million entitlement offer to existing unitholders, the $180 million placement to Dexus at $2.60 per unit and a $20 million placement to Australian Unity Strategic Holdings (AUSH).
In addition to the Australian Unity Placement, AUSH will make a premium cash offer (PCO) to purchase units from existing investors in AUHPT.
AUSH is a direct wholly-owned subsidiary of Australian Unity Limited.
AUHPT is one of Australia’s largest healthcare operators and real estate owners. It has more than $2.6 billion under management and a development pipeline of $1 billion of greenfield and brownfield development opportunities.
“We are confident in the outlook for healthcare real estate and the investment in AUHPT provides us with an efficient way to increase our exposure to this attractive asset class at an appealing price,” Dexus CEO Darren Steinberg said.
“The broader relationship with Australian Unity provides an opportunity for us to accelerate our growing footprint in healthcare real estate and provides our funds and third party partners with additional investment opportunities.”
Dexus said today’s announcement will not impact its existing healthcare property fund, saying it will operate independently.
Dexus has also provided AUHPT with a first right to acquire a 25 per cent indirect interest in the Australian Bragg Centre on market-based terms.
Dexus will have a first right over the Australian Unity management platform for AUHPT in circumstances in which Australian Unity decides to sell an interest in the platform.
Following the $20 million placement, and assuming the full take-up of the $80 million PCO, Australian Unity’s interest in AUHPT (directly and through Australian Unity controlled entities) may increase to approximately 5.02 per cent.
“These investments reflect the Australian Unity Group’s commitment to the trust’s ongoing growth on behalf of its unit holders, our members and the broader Australian community and our belief in the significant opportunity for multi-year value development by this trust,” Australian Unity chair Peter Promnitz said.
The PCO offer will open on June 9, 2021 and is expected to close on July 12, 2021.
Under the terms of the PCO, AUSH has the discretion to buy a greater or lesser amount of each unit class, provided it does not exceed $80 million.
If applications exceed $80 million they will be subject to scale back.
Dexus shares are down 0.37 per cent on the market today, dropping to $10.70 per share as of 12:23 pm AEST.