An open-ended Dexus-managed Australian healthcare fund has bought a private hospital in southeast Queensland for around A$51m (€30m).

The Dexus Healthcare Property Fund (DHPF), which raised a further A$220m in July, has bought Southport Private Hospital, on the Gold Coast. The 90-bed mental health and rehabilitation facility is operated by Ramsay Health Care.

DHPF fund manager Jemma Maddick said: “This investment is in line with the fund’s strategy of securing core, CPI linked, long WALE, high-quality healthcare assets leased to blue-chip operators in key areas with high demand for healthcare services.”

Maddick said the hospital had a 20-year lease with the operator, and that this provided income security for investors of the A$1.8bn fund.

Maddick added: “DHPF continues to attract capital, enabling it to execute on strategic growth opportunities. We are seeing an increasing number of quality investment opportunities presenting themselves and we are well capitalised and credentialed to continue to diversify the fund.”

Dexus’s executive general manager of funds management Deborah Coakley said: “Investors in our flagship healthcare fund benefit from high-quality healthcare property benefiting from long-term demand for quality healthcare services, with Australia’s health spending projected to continue to grow as a percentage of GDP over the next 40 years.”

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