Dexus outlays $138.7m on Monash Parkville buildings

Six years ago, Monash paid $10.9m for 407-417 Royal Parade (shaded red), a two level office next to the Dexus buildings.

Dexus managed Healthcare Property Fund (DHPF) is paying $138.7 million for two mid-rise offices in Melbourne’s inner north Parkville.

Building 404 at 399 Royal Parade and the neighbouring Manning Building, which goes by a Mile Lane address, form part of a Monash University campus accommodating its Pharmacy and Pharmaceutical Sciences faculty.

The college pays annual rent of about $6.24m – meaning the deal is being struck at a c4.5 per cent yield.

The Weighted Average Lease Expiry is 12.4 years.

DHPF is now worth about $1.08 billion.

“The Parkville acquisition adds another large-scale, income-producing asset located in a word class biomedical precinct to DHPF’s portfolio,” executive general manager for fund management, Deborah Coakley said.

“There are further opportunities…currently under review,” the executive added.

One of these, according to its March 2021 Market Update, is the Spring Hill Medical Centre. Another is in Perth (story continues below).

In October, the fund, in a 50:50 partnership with its manager, paid $446.2m for Adelaide’s Australian Bragg Centre, also known as SAHMRI 2, which was nearing completion.

Nine months ago it outlaid $36.5m for the modern College Junction commercial building at Brisbane’s Clayfield.

In late 2019 Dexus sold the trust the then-unbuilt North Shore Health Care Hub at 7 Westbourne Street, St Leonards (Sydney), an asset recently appraised at $235m.

DHPF was seeded in 2017 with two Adelaide properties then-valued at a total of $370m – the 12-level Adelaide Calvary Private, with 36,127 sqm, and GP Plus Healthcare Centre.

Trust investors include Malaysia’s Employees Provident Fund, which committed $100m two years ago, and the Clean Energy Finance Corporation.

CBRE’s Mark Coster introduced the buyer.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco