Primary Health Properties PLC Acquisition of three properties (2158M)
27 July 2017 - 4:03PM
UK Regulatory
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: +44 (0) 20 7451 7050 Tel: +44 (0) 20 7104 2004
David Rydell / Elizabeth Snow / Eve Kirmatzis
Bell Pottinger
T +44 (0) 20 3772 2582
This information is provided by RNS
The company news service from the London Stock Exchange
END
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