Adelaide Medical Centre Sold
The Australian Bragg Centre, a state-of-the-art clinical and research facility within Adelaide’s $3.6 billion BioMed City precinct in Adelaide, has recently been sold to a 50/50 partnership involving real estate group Dexus for $446.2 million, marking one of the largest single-asset private healthcare acquisitions in Australian history.
Dexus is joined by an unlisted healthcare fund it manages, Healthcare Wholesale Property Fund (HWPF), for the deal. Once completed, the medical centre will increase Dexus’s group healthcare exposure to over $1 billion and concurrently grow HWPF’s portfolio to $900 million.
Dexus CEO, Darren Steinberg noted that, “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.”
The building, which is being developed by Commercial & General, will incorporate 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.
It will also 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.
Commercial & General have already secured pre-leases of around 77% to customers either backed or supported by the South Australian Government, with a weighted average lease expiry 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.
Commercial & General CEO, Trevor Cooke said, “This is a vote of confidence by the institutional market in the South Australian economy and the quality opportunities we continue to create. The Australian Bragg Centre is a transformational project that builds on our long-standing relationship with Dexus.”
The transaction is expected to settle on 30 October 2020.