Property groups Dexus and Commercial & General have teamed up to expand into healthcare, saying the sector is under-invested and poses "a significant long-term opportunity".
The two groups have established the unlisted Australian Healthcare Property Fund, which will initially include $370 million worth of properties including the Adelaide Calvary Hospital and the GP Plus Healthcare Centre, a large facility leased by the South Australian government in Adelaide.
In a statement on Wednesday Dexus said the new fund had a pipeline of other opportunities worth about $390 million in other states, including NSW and Queensland.
Dexus said the Australian healthcare sector needs investment and represents a significant long-term opportunity because of Australia's ageing population and the industry's non-discretionary nature, which protects it from volatility in other property sectors such as retail.
"We are pleased to partner with C&G and look forward to continuing to build scale in the growing healthcare sector which will benefit from the underlying mega-trends of population growth and an ageing demographic," Dexus chief executive Darren Steinberg said.
Dexus said the healthcare sector in Australia comprises assets worth about $125 billion, with hospitals and medical centres equating to a sector comparable in size to the industrial property market.
Dexus will initially invest $80 million in the new healthcare property fund.
Units in Dexus were 9.5 cents, or 0.95 per cent, lower at $9.935 at 1231 AEST.
