Primary Health buys Cardiff medical centre for £4.5m

(Sharecast News) - Primary Health Properties has bought a medical centre in Cardiff for £4.5m to add to its portfolio.
The healthcare property investor has bought Sarak Group, whose sole asset is the Crwys Medical Centre in Cathays in the Welsh capital. Primary Health will pay about £1m in shares at 12.5p each to two of the sellers with the rest in cash.

Primary Health said the building is a modern, purpose-built primary care centre, comprising 9,384ft of lettable space over three floors. The property is fully let to a large local GP practice serving over 8,000 patients and to a pharmacy. About 80% of the leases' income is backed by the government.

The purchase will expand Primary Health's portfolio to 516 assets with a contracted rent roll of more than £138m. The company said it had a strong pipeline of further potential deals in the UK and Ireland.

Harry Hyman, Primary Health's chief executive, said: "We are delighted to have acquired this modern purpose-built primary care centre, further increasing the group's footprint. The medical centre plays an important role in the provision of primary care in the local health economy being one of the only modern purpose-built buildings in the immediate area."

The company's shares fell 0.1% to 166.33p at 08:54 BST.