21 December 2017
The CEFC is aiming to kick start new standards in clean energy for healthcare by investing up to $100 million in the new Dexus Healthcare Wholesale Property Fund (HWPF).
HWPF will own Australia's first portfolio of hospital and healthcare assets to have an environmentally sustainable development focus. Australian Ethical Investments is also participating in the fund.
HWPF has $370 million in seed assets, including Adelaide's 12-storey 343-bed Calvary Hospital, and the GP Plus Health Care centre in Elizabeth, north of Adelaide. Dexus has identified a further $445 million in pipeline opportunities, including the North Shore Health Hub in St Leonards in Sydney, and a new medical research facility in Adelaide.
"The healthcare sector is ideally suited to benefit from clean energy investments, and yet interest in improving energy efficiency in this area is long overdue," CEFC Property Sector Lead Chris Wade said.
"Healthcare facilities typically use far more energy than standard office buildings because they operate for extended hours, have high hot water consumption, and extensive air conditioning and specialist medical equipment requirements.
"Dexus has a well-earned reputation for its leadership in building energy efficiency and sustainability. With our investment in HWPF we are pleased to work with Dexus in leading an important Australian first. Our goal is to catalyse new standards in energy efficiency and clean energy in this energy intensive part of the economy, while also accelerating sustainability in the healthcare sector."
Deborah Coakley, Dexus Executive General Manager, Funds Management said: "We're pleased to announce the securing of our foundation investors in the Healthcare Wholesale Property Fund and look forward to continuing to develop the fund. Investor interest in the sector has been strong, both domestically and globally, and we're excited by the growth opportunities this represents, with a second round of equity to be raised in 2018."
HWPF is targeting emissions reductions of 45 per cent in both new and existing buildings when compared with the Council of Australian Government (COAG) Baseline Energy Consumption in commercial buildings. New HWPF buildings will target a Green Star Design, an As Built rating of 5 Stars and Green Star Performance Rating.
Over the long term, HWPF is targeting a portfolio of net zero carbon outcomes, including low-emission transport options, such as electric vehicles, ride sharing and integration with local transport infrastructure. Tenants and hospital users will also be encouraged to adopt energy efficient practices.
The CEFC has identified energy efficiency in the built environment as a key priority for lowering Australian's carbon emissions, alongside the increased use of renewable energy and low emissions vehicles. CEFC finance is already supporting innovative energy efficiency improvements in social housing, student accommodation, retrofits for existing commercial buildings and landmark new constructions which showcase the highest sustainability standards.
According to the International Energy Agency, the building sector represents about 30 per cent of global energy use, indicating massive energy-savings potential. However, improvements in energy intensity remain slow, with total spending on energy efficiency in the global buildings sector representing less than nine per cent of total investment in building construction and renovation in 2016.
Mr Wade added: "New and existing buildings can be early adopters of proven clean energy technologies, which can deliver long-term improvements in energy efficiency and sustainability. These investments are essential if our built environment is to achieve net zero emissions.
"With this investment in the healthcare sector, we are looking to demonstrate the extensive benefits of clean energy right across the economy. This investment complements the exciting work we are already doing across the property sector, in areas such as community housing, student accommodation and commercial office buildings."
Dexus is one of Australia's leading real estate groups, proudly managing a high quality Australian property portfolio valued at $24.9 billion. We believe that the strength and quality of our relationships will always be central to our success, and are deeply committed to working with our customers to provide spaces that engage and inspire. We invest only in Australia, and directly own $12.2 billion of office and industrial properties. We manage a further $12.7 billion of office, retail, industrial and healthcare properties for third party clients. The group's $4.3 billion development pipeline provides the opportunity to grow both portfolios and enhance future returns. With 1.8 million square metres of office workspace across 54 properties, we are Australia's preferred office partner. Dexus is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange (trading code: DXS) and is supported by 28,000 investors from 20 countries. With more than 30 years of expertise in property investment, development and asset management, we have a proven track record in capital and risk management, providing service excellence to tenants and delivering superior risk-adjusted returns for investors. www.dexus.com
Media release, 2017