Dexus managed Healthcare Wholesale Property Fund – which delivered a high 10.9 per cent return for the year to June 30 – has paid $36.5 million for the College Junction commercial complex in Brisbane’s north Clayfield.
The trust also announced today that it secured a $70m investment from a local institutional partner.
The injection is anticipated to be spent on other healthcare occupied assets.
Dexus is the manager and one of six HWPF investors.
At 695 Sandgate Road, on the north east corner of Wagner Rd, College Junction was completed three years ago.
Over three storeys, and incorporating the facade of the 1921 Durham Place, it contains 3118 sqm of lettable office space and a basement car park.
A small (154 sqm) part of the complex is for lease (story continues below).
The anchor tenant is Qscan Radiology Clinics but several other healthcare related businesses are also based there.
The weighted average lease expiry is 8.8 years.
Clayfield Properties paid $3.05m for the retail arcade on a 1492 sqm plot which made way for College Junction in 2014; at the time, vendor Scanlan Properties said, it struggled to find tenants.
Savills’ Gregory Woods and Daniel Pepper sold it this time around.
HWPF expects to settle on the medical centre, seven kilometres from the CBD, in November.
Dexus executive general manager, Funds Management, Deborah Coakley, said following the acquisition, the fund’s portfolio is valued at $654m and diversified by location, tenant and healthcare asset type.
The wholesale and open-ended unlisted fund has a weighted average lease expiry of 27 years, well above average.