Primary Health Properties PLC Acquisition of three properties (2158M)

TIDMPHP

RNS Number : 2158M

Primary Health Properties PLC

27 July 2017

27 July 2017

Primary Health Properties PLC

Acquisition of three properties

Primary Health Properties PLC ("PHP"), the UK's leading investor in modern primary healthcare facilities, announces that it has acquired, in two separate transactions, three modern, purpose built healthcare facilities for a total consideration of GBP35.5 million (net assets and debt acquired of GBP35.5 million).

In the first transaction, PHP has agreed to acquire the entire issued share capital of Ettrick Health Limited, a company whose sole activity is the ownership of the Low Grange Health Village, Middlesbrough, and the Evenwood Medical Centre, Bishop Auckland, for a total consideration of GBP27.1 million (net assets and debt acquired of GBP27.1 million). These facilities together serve approximately 25,000 patients.

Low Grange Health Village is fully let to a combination of tenants, with a weighted average unexpired lease term ("WAULT") of approximately 17.3 years, and approximately 86% of the income being generated from two GP practices and NHS Property Services. At the facility, 96% of the income benefits from three-yearly fixed rent increases of 3% per annum. The asset acquired also includes an associated expansion site. The smaller Evenwood Medical Centre is fully let to NHS Property Services for a 20 year term with three yearly upwards only RPI reviews, with approximately 13 years unexpired.

PHP has also acquired, in a separate transaction, a modern, high quality primary care centre in Syston, Leicestershire for a cash consideration of GBP8.4 million (net assets acquired of GBP8.4 million).

The Syston Health Centre comprises of 2,575m(2) of modern purpose built space. It is fully let to two GP practices with a combined patient list of over 23,000 in addition to the Leicestershire Partnership NHS Trust, who provide integrated mental health, learning disability and community health services from the facility, and a pharmacy. The weighted average unexpired term of the leases is approximately 16.1 years.

These acquisitions increase PHP's portfolio to a total of 303 assets with a gross value of over GBP1.3 billion and a contracted rent roll of GBP71 million, and the unexpired lease terms will be accretive to the overall WAULT.

Harry Hyman, Managing Director of Primary Health Properties, commented:

"These acquisitions represent an important addition to PHP's portfolio, given their substantial lot sizes and importance in their respective communities, with the majority of the income secured by government backing. All the assets are high quality, purpose built properties and with facilities capable of meeting the needs and requirements of a modern primary care service. We continue to have a strong pipeline of acquisitions in the UK and Ireland and are well positioned to grow our portfolio of modern, primary care infrastructure over the long term."

More information on Primary Health Properties PLC can be found on www.phpgroup.co.uk.

Further details:

 
 Harry Hyman                                     Richard Howell 
  Managing Director                               Finance Director 
  Tel: [phone]                       Tel: [phone] 
 
 David Rydell / Elizabeth Snow / Eve Kirmatzis 
  Bell Pottinger 
  T [phone] 
 

This information is provided by RNS

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July 27, 2017 02:03 ET (06:03 GMT)