Dexus Halts Redemptions on Healthcare Fund Amid Valuation Dispute

Dexus has stopped payouts from its $1.5 billion healthcare property fund in response to a valuation dispute, aiming to ensure fairness for investors.

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Pick & Scroll News
July 02, 2025

Dexus has stopped payouts from its $1.5 billion healthcare property fund in response to a valuation dispute, aiming to ensure fairness for investors. This decision comes at a time when the company is also dealing with broader legal challenges.


The Dexus Healthcare Property Fund gives institutional investors access to a portfolio of healthcare-focused properties. A disagreement has emerged over the value of one key asset, the Australian Bragg Centre in Adelaide. This facility will feature a proton therapy treatment center that is still under construction but is facing delays due to supplier issues.


Although investors are still permitted to request redemptions, Dexus has delayed processing these transactions. The company says it needs time to reassess unit pricing due to uncertainty over the lease status of the property’s main tenant and delays in construction. The South Australian Health and Medical Research Institute, a government agency, is the primary occupant of the building in question.


Separately, Dexus is involved in a legal dispute with the same tenant over lease conditions. While this legal case is reportedly not linked to the pause in redemptions, it adds to the company's growing list of challenges. Dexus is also under pressure in another dispute related to its $4 billion investment in two major Australian airports.


The company is engaged in a prolonged conflict with several large institutional investors linked to APAC, which owns Melbourne and Launceston Airports. These investors, including IFM and the Future Fund, are pushing Dexus to sell its 27.3% stake following earlier discussions about a partial divestment. The combined value of the two airport assets is estimated to be around $14 billion.


In a wider context, the redemption freeze could suggest rising pressure in parts of Australia’s property investment market. Large-scale projects appear more vulnerable to delays and legal issues. With court mediation over the airport dispute scheduled for November, the coming months will be crucial for Dexus as it works to maintain investor trust in both real estate and infrastructure assets.