Dexus establishes $760m healthcare JV

Company News

by Jessica Amir

Dexus (ASX:DXS) has entered into a joint venture (JV) with Commercial and General (C&G) to establish a new wholesale unlisted healthcare fund, that is tipped to be worth $760 million.

The real estate investment trust says the Australian healthcare sector is under-invested and offers significant long-term opportunities.

The new fund, the Australian Healthcare Property Fund, will be seeded with $370 million of properties, including the Adelaide Calvary Hospital (which is under development) and the GP Plus Healthcare Centre in Adelaide.

In addition to that, the fund has a further $390 million of pipeline opportunities, with properties in New South Wales and Queensland.

As part of the JV, Dexus and Commercial and General (C&G) will co-invest in the fund, with Dexus to initially invest about $80 million.

The parties will also establish a jointly owned investment manager.

The fund will be launched at the end of 2017.

Shares in Dexus (ASX:DXS) are trading 0.95 per cent lower to $9.93.
 

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?