hospital-stockmarket-overlay-transparent-feature
Image – Canva.
  • $320M capital raise for AUHPT includes $180 from Dexus
  • AUHPT currently has $2.6B in healthcare assets
  • New units to be issued at $2.60 per unit

In recent months, some of the strongest commercial real estate performers during and post Covid have included storage and health care.

Storage has been the most sought-after property class in Western Australia, for example, as reported by the Property Tribune.

More recently, National Storage (ASX: NSR) started and successfully completed the first stage of a $325 million equity raise, with $260 million already in company coffers.

Healthcare has also seen keen interest, Centuria Capital Group (ASX: CNI) parted with $64 million to buy and develop a hospital in Kew, Victoria.

Centuria also saw the practical completion of the St John of God oncology facility in Perth.

HomeCo saw promise in the sector, launching a billion dollar raising effort to fund their new healthcare arm HealthCo. It is now well on its way to the target.

A CBRE healthcare report said there has been a surge in demand for healthcare real estate, Covid being a clear driver for the interest.

Lease terms are also particularly attractive.

“In most scenarios healthcare assets typically offer a longer lease term or WALE than more traditional ‘core’ asset classes.”

Healthcare and Social Infrastructure, CBRE

Additional drivers for investment, the CBRE report said, included record low costs of capital, and “comparably stronger yields for foreign investment groups given the weak value of the AUD.”

Today

Dexus (ASX: DXS) established a new healthcare platform relationship with Australian Unity (ASX: AYU), in particular, the Australian Unity Healthcare Property Trust (AUHPT).

AUPHT announced that it will raise up to $320 million, with $180 million coming from Dexus.

The company said the remainder included $120 million as an entitlement offer for AUPHT wholesale units, and $20 million in a placement to Australian Unity Strategic Holdings (AUSH).

Both the Dexus and AUSH will be at $2.60 per unit.

“Since Australian Unity established the Healthcare Property Trust in 1999, it has grown to become a leading portfolio of healthcare property with assets under management of more than $2.6 billion”

Peter Promnitz, Australian Unity Chair

“Dexus has also provided AUHPT a first right to acquire a 25% indirect interest in the Australian Bragg Centre (on market-based terms), and Dexus will have a first right over the Australian Unity management platform for AUHPT in circumstances in which Australian Unity decides to sell an interest in the platform,” said Dexus in a statement.

auhpt-dexus-key-statistics
Image – Dexus.

“We are confident in the outlook for healthcare real estate and the investment in AUHPT provides us with an efficient way to increase our exposure to this attractive asset class at an appealing price.”

Darren Steinberg, Dexus CEO



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