Dexus Healthcare Property Fund (DHPF) has acquired Southport Private Hospital, a 90-bed mental health and rehabilitation facility in Queensland, Australia, for A$51 million ($33 million).
This represents the first transaction for the fund following its fully subscribed A$220 million ($140 million) equity raise in July.
Southport Private Hospital is operated by Ramsay Health Care, a major healthcare provider which, in 2022, committed to achieving net-zero greenhouse gas emissions across its value chain by the year 2040. The Southport Private Hospital provides comprehensive mental health and rehabilitation services to the Gold Coast and wider community.
“We are pleased to extend our partnership with Ramsay Health Care through the acquisition of this high-quality hospital, while supporting the delivery of essential health services to the Southport community,” said Jemma Maddick, fund manager at DHPF. “This investment is in line with the fund's strategy of securing core, CPI-linked, long WALE, high-quality healthcare assets leased to blue-chip operators in key areas with high demand for healthcare services. The 20- year lease provides income security, backed by Australia's largest private hospital operator, Ramsay Health Care.”
DHPF is an open-end unlisted property fund providing wholesale clients with a high-quality healthcare property portfolio. It had approximately A$1.8 billion ($1.1 billion) of properties, as of June 2023.
“Investors in our flagship healthcare fund benefit from high-quality healthcare property benefiting from long-term demand for quality healthcare services, with Australia's health spending projected to continue to grow as a percentage of GDP over the next 40 years,” said Deborah Coakley, executive general manager of funds management at Dexus. “These trends and recent government modeling underscore the need for private capital to be invested to support our communities.”