Dexus Healthcare Property Fund (DHPF) has acquired the 90-bed (mental health and rehab), Ramsay Health Care operated, Southport Private Hospital for around $51 million.

Commenting on the first transaction for the $1.8 billion fund since its fully subscribed $220 million equity raise in July 2023, DHPF Fund Manager Jemma Maddick notes the investment further consolidates the fund’s strategy of securing core, CPI-linked, long WALE, high-quality healthcare assets leased to blue-chip operators, like Ramsay Health Care – Australia’s largest private hospital operator.

“DHPF continues to attract capital, enabling it to execute on strategic growth opportunities,” says Maddick.

“We are seeing an increasing number of quality investment opportunities presenting themselves and as a leader in the sector we are well capitalised and credentialed to continue to diversify the Fund.”

What continues to underpin DHPF’s growth mandate, adds Dexus’s Executive General Manager of Funds Management Deborah Coakley, are strong sector and demographic trends including an ageing and growing population.

“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,” says Coakley.

“These trends and recent government modelling underscore the need for private capital to be invested to support our communities.”