Join our daily newsletter At The Bell to receive exclusive market insights
- Dexus’ (DXS) unlisted healthcare fund acquires Arcadia Pittwater Private Hospital and day rehabilitation centre, adding to its expanding portfolio
- The property was purchased off-market for $50.5 million and is fully leased to Arcadia Health Care with a weighted average lease term of 26.5 years
- DHPF fund manager Jemma Maddick says the acquisition comes with a stable income stream and helps to grow and diversify the fund’s portfolio
- This acquisition brings the total value of DHPF funds under administration to more than $1.3 billion across nine assets
- DXS shares are 0.8 per cent down and trading at $10.56 each at 12.39pm AEST
Dexus’ (DXS) healthcare property fund (DHPF) has purchased Arcadia Pittwater Private Hospital and day rehabilitation centre, adding another asset to its growing portfolio in a blooming asset class.
Arcadia Pittwater is a 5-level private sub-acute rehabilitation facility in Warriewood, on Sydney’s Northern Beaches. The hospital, which opened in 2018, was designed specifically for Arcadia Health Care and features 85 beds, consulting rooms, physiotherapy space, and a hydrotherapy pool.
The property was purchased off-market for $50.5 million and is fully leased to Arcadia Health Care with a weighted average lease term of 26.5 years. Furthermore, there is a possibility for future brownfield growth under the present DA.
DHPF fund manager Jemma Maddick said the acquisition comes with a stable income stream and helps to grow and diversify the fund’s portfolio.
“This acquisition will deliver another quality asset with a stable income stream for DHPF and continues our strategy to grow and diversify the fund through the acquisition of high-quality developments and stabilised healthcare assets,” she said.
This acquisition brings the total value of DHPF funds under administration to more than $1.3 billion across nine assets, after around $600 million in healthcare acquisitions in FY21.
To June 30 2021, DHPF had a 12-month total return of 18.1 per cent (after fees).
“We welcome the acquisition of Arcadia Pittwater by Dexus, with whom we share a vison for the delivery of premium health care assets and best in class clinical outcomes, “Arcadia Health Care CEO Harry Pannu said.
It is just the latest move for the unlisted fund after acquiring two Brisbane developments in heath precincts for a combined price of roughly $130.7 million and a healthcare development in Perth for $58.3 million in June.
It came after the fund acquired a large-scale life science asset in Melbourne’s Biomedical precinct for $138.7 million.
According to CBRE research, Australia’s life sciences real estate market is anticipated to nearly quadruple in value to $24 billion over the next decade, indicating a major shift in profile for the prospective asset class.
The pharmaceutical, biotechnology, medical equipment, food science, and healthcare industries are all part of the life science business.
DXS shares were 0.8 per cent down and trading at $10.56 each at 12.39pm AEST.
