Dexus spends $131m for healthcare fund

The Spring Hill Medical Centre will incorporate the 1880s International Hotel.

Silverstone Developments has sold two inner north Brisbane investments to Dexus which will hold them in the c$1.3 billion Healthcare Property Fund (DHPF).

A 2018 impression of the Herston car park entrance.

Both properties – a 10-level medical centre at Spring Hill and a Herston car park – are being purchased on a funds-through basis.

The total outlay is $130.7 million.

Three weeks ago, for the fund, Dexus committed $180m to the Australian Unity Healthcare Property Trust, a deal which gave it first right to that entity’s management platform.

Also this month, for DHPF, Dexus paid $58.3m for Perth’s Bethesda Clinic, offered by Bethesda Health Care with a 20 year pre-commitment.

Nine weeks ago, the manager outlaid $138.7m for two buildings, part of Monash University’s Pharmacy and Pharmaceutical Science campus, in Melbourne’s inner north Parkville.

Spring Hill Medical Centre

The Spring Hill property, with c6100 square metres of lettable area, is designed with ground floor retail and a rooftop terrace.

About 149 car parks are also planned.

Dexus will manage the leasing campaign; it added a national day surgery operator is in advanced negotiations for four floors (story continues below).

Silverstone will construct the property within and on airspace of the 1880s International Hotel.

The 1745 sqm site, 525 Boundary Street and 19 Torrington St, cost it $5m in 2019.

Herston car park

The Herston car park, with 354 bays, is pre-committed for five years.

Earmarked for 43 Butterfield Rd, the five level building is adjacent to the Herston Health Precinct, home to Queensland Health’s Royal Brisbane and Women’s Hospital.

Silverstone priced the construction works at $10-$15m.

“These off-market acquisitions deliver value-add opportunities to our investors in a highly competitive market,” Dexus executive general manager, Funds Management, Deborah Coakley, said of the acquisitions.

The Spring Hill and Herston deals – negotiated by Cushman & Wakefield’s Peter Court – are expected to settle next month.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of