Dexus enters JV to create property fund

Dexus enters JV to create property fund

Dexus Funds Management has established a joint venture agreement with Commercial & General to create a new wholesale unlisted healthcare fund.

Plans by Dexus to create a new healthcare property fund with Commercial & General (C&G) come a week after Dexus announced a $500 million capital raising.

The new fund will be seeded with approximately $370 million of properties including the Adelaide Calvary Hospital and GP Plus Healthcare Centre in Adelaide – and Dexus said there are a further $390 million worth of properties "in the pipeline".

The responsible entity of the The Australian Healthcare Property Fund, as it will be known, will be wholly owned by Dexus as part of the group's funds management platform.

"As part of the joint venture, Dexus and C&G will co-invest in the fund and establish a jointly owned investment manager. Dexus’s initial co-investment will be approximately $80 million," said a statement announcing the deal.

Dexus chief executive Darren Steinberg said, "We are pleased to partner with C&G and look forward to continuing to build scale in the growing healthcare sector, which will benefit from the underlying mega-trends of population growth and an ageing demographic. We see this property asset class as a logical extension to our funds management platform."

C&G executive chairman Jamie McClurg said, "We are very excited about this JV with Dexus and are committed to delivering consistently outstanding outcomes. We see our combined capabilities being leveraged to develop a leading, scalable fund for wholesale investors."

The fund will be marketed beginning in July and will be launched by the end of the year.



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