Dexus and its managed Healthcare Wholesale Property Fund are paying $446.2 million for a medical investment under construction in Adelaide’s CBD.
The Australian Bragg Centre will include the country’s first proton therapy unit specialising in cancer care.
It forms part of the $3.6 billion BioMed City precinct at the western edge of North Terrace.
The purchasers will control the asset equally.
The acquisition ups the value of Dexus’ healthcare holdings to over $1b.
“It also increases [its] portfolio diversification, providing exposure to a sector with strong tailwinds,” a statement by the pair said.
HWPF meanwhile, which famously in finance circles has a lengthy Weighted Average Lease Expiry of 27 years (excluding the Adelaide property), will now control medical assets worth c$900m.
Five months ago, the fund paid $36.5m for a modern investment in Brisbane’s Clayfield.
The Australian Bragg Centre is scheduled to settle on October 30, 2020.
Commercial & General was the vendor (story continues below).
The Australian Bragg Centre
Also known as SAHMRI 2, the clinical research facility is 77 per cent pre-committed to tenants either backed or supported by the South Australian government.
Due for completion in August 2023, it will contain 32,000 sqm of area, rising 11 floors at its highest.
The proton therapy component is expected to assist between 600-700 patients a year.
C&G offered a two year rental guarantee on the unfilled space.
The buyers put the building’s WALE at 21.9 years.
Dexus chief executive officer Darren Steinberg added “this transaction accelerates the growth of our funds management platform and is a step towards our goal of being a partner of choice in Australian healthcare property”.
C&G chief executive officer Trevor Cooke added “the Australian Bragg Centre is a transformational project that builds on our long-standing relationship with Dexus”.
He described the deal as a vote of confidence by the institutional market in the South Australian economy and the quality opportunities created.