DGAP-Adhoc

Dexus Finance Pty Limited: Dexus and HWPF to acquire state-of-the-art healthcare development

DGAP-Ad-hoc: Dexus Finance Pty Limited / Key word(s): Acquisition/Real Estate Dexus Finance Pty Limited: Dexus and HWPF to acquire state-of-the-art healthcare development 20-Oct-2020 / 04:57 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. Dexus (ASX:DXS)

ASX release

20 October 2020

Dexus and HWPF acquire state-of-the-art healthcare development

Dexus and the Healthcare Wholesale Property Fund (HWPF) have exchanged contracts to acquire 
(in 50/50 co-ownership) the Australian Bragg Centre in Adelaide from Commercial & General.

The asset was acquired for a development completion price of $446.2 million^[1], making the transaction one of the largest single-asset private healthcare acquisitions in Australia.

The Australian Bragg Centre building (also known as SAHMRI 2) is a state-of-the-art clinical and research facility within Adelaide's $3.6 billion BioMed City precinct, incorporating world-class facilities for cutting edge research by the South Australian Health and Medical Research Institute (SAHMRI) and lab and office space for SA Health and biomedical companies. The building will house Australia's first proton therapy unit specialising in next generation cancer treatment. The proton therapy unit will sit in a purpose-built bunker and be overseen by the clinical and research expertise of SAHMRI and is supported by Federal and State Government funding.

The building, which is currently under development, is 77% pre-leased to customers either backed or supported by the South Australian Government, with a weighted average lease expiry^[2] of 21.9 years from completion in August 2023. The acquisition terms include a two-year rental guarantee provided by Commercial & General over the remaining space to be leased.

On completion, the Australian Bragg Centre will increase Dexus's group healthcare exposure to over $1 billion and grow HWPF's portfolio to $900 million.

Dexus CEO, Darren Steinberg said: "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. It also increases Dexus's portfolio diversification, providing exposure to a sector with strong tailwinds."