Dexus raises $220m for healthcare RE fund

Oksana Patron

25 July 2023

Dexus has announced it has raised $220 million in new equity for its healthcare real estate fund, Dexus Healthcare Property Fund (DHPF).

The equity raise, which was fully subscribed, saw existing investors accounting for approximately 65% of the new capital, demonstrating, according to the company, a “strong investor interest in the fund’s high quality healthcare portfolio” and placed the fund in a strong position to pursue further acquisitions.

According to DHPF Fund Manager, Jemma Maddick, the fund resonated strongly with investors looking to capitalise on sector tailwinds via a quality portfolio.

Dexus says DHPF is an open-ended unlisted property fund providing wholesale clients with a healthcare property portfolio, which has approximately $1.8 billion of properties (estimated on completion value at 30 June 2023) comprising large-scale assets offering secure income profiles, anchored by well-credentialled healthcare operators.

The fund recently acquired a 9.95% interest in Celsus Holding Pty Ltd (Celsus), the consortium that manages and maintains the Royal Adelaide Hospital alongside Dexus Community Infrastructure Fund and Dexus Core Infrastructure Fund, further diversifying the fund’s investments to include a Public-Private Partnership.

DHPF has delivered strong returns since inception, delivering a five-year fund return (post fees) of 13.6% to 31 March 2023, outperforming the comparable MSCI benchmark return of 12.4%.

Last month, Dexus reported a total estimated decrease in asset valuation of approximately $1 billion, or 6%, with the value of office portfolio falling 7.7% and the industrial portfolio being down 0.2%.