In April one of the fund’s flagship assets, the North Shore Health Hub at St Leonards in Sydney, was completed. Last year it acquired the Australian Bragg Centre in Adelaide and College Junction in Brisbane.
Values have been rising and yields for institutional-grade healthcare real estate have been falling as the sector takes up more mainstream investment appetite. In an ongoing takeover battle for Australian Unity’s unlisted healthcare real estate fund, its suitor, Canada’s NorthWest Healthcare Properties’ $2.7 billion represents a yield of 4.57 per cent, tighter than some office and industrial portfolios.
For Dexus, the development at Cockburn Central West is due to be completed late next year, when Bethesda will begin an initial 20-year lease term operating a private mental health facility.
The first stage of the development will comprise a 45-bed mental health clinic with outpatient services. There is an option for Bethesda to further develop a second stage. The final configuration of that will be worked through in the coming months.
Dexus, the country’s largest office tower owner, itself retains a 27 per cent stake in the healthcare property fund, alongside the Clean Energy Finance Corporation, the Employees Provident Fund Malaysia and another large local investor. A number of large players were in due diligence for potential investment into the fund, Ms Coakley said in April.