Dexus raises $220m in new equity for its healthcare fund

Dexus raises $220m in new equity for its healthcare fund

Dexus today announced it had successfully raised $220 million for its healthcare real estate fund, Dexus Healthcare Property Fund (DHPF).

DHPF’s equity raise was fully subscribed, with existing investors accounting for circa 65% of the new capital. The fund has a diversified register and has raised $1.3 billion from 16 institutional investors since its inception in December 2017. The equity raise highlights strong investor interest in the fund’s high quality healthcare portfolio and places DHPF in a strong position to pursue further acquisitions.

Dexus Executive General Manager Funds Management, Deborah Coakley said: “This successful equity raise confirms investor interest in high quality healthcare investments remains elevated. We are committed to continuing to unlock healthcare investment opportunities for our investors.”

DHPF Fund Manager, Jemma Maddick said: “DHPF resonates strongly with investors looking to capitalise on sector tailwinds via a high quality portfolio, while leveraging the Dexus platform to grow the fund and deliver performance for our investors.”

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%.

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