Dexus has picked up a private hospital in Sydney’s Northern Beaches for $50.5 million with space for future brownfield development from Breckenridge Fund Management.
The five-level Arcadia Pittwater Private Hospital will be added to the Dexus Healthcare Property Fund.
Breckenridge developed the purpose-built hospital in 2017. It includes 85 beds, consulting suites, physiotherapy space and a hydrotherapy pool at 4 Daydream Street, Warriewood.
Arcadia Health Care lease 100 per cent of the facility which has a weighted average lease expiry of 26.5 years.
Dexus fund manager Jemma Maddick said they were pleased to add the sub-acute rehabilitation hospital to the fund and welcomed the relationship with a well-established healthcare operator.
“This acquisition will deliver another quality asset with a stable income stream for DHPF and continues our strategy to grow and diversify the fund through the acquisition of high-quality developments and stabilised healthcare assets,” Maddick said.
Breckenridge managing director Rob Lloyd said they were very proud of the development and sale which was an excellent result.
“In 2015, Breckenridge recognised the emerging strength of the healthcare sector and committed to this development on a fund through basis,” Lloyd said.
“The sale continues Breckenridge’s strong track record of delivering quality property and excellent returns to our client base of high-net-worth investors and family offices.”
This acquisition grows DHPF funds under management to more than $1.3 billion across nine assets and follows circa $600 million of healthcare acquisitions in the 2021 financial year.
This included the Qscan head office in Brisbane in August 2020 for $36.5 million.
Healthcare-focused properties were very resilient with both the private and public sector investing heavily in the sector during the pandemic.
