Primary Health Regulatory News (PHP)

11 February 2019

Primary Health Properties PLC

Portfolio Update

Primary Health Properties PLC ("PHP"), one of the UK's leading investors in modern primary healthcare facilities, announces that it has acquired the entire issued share capital of Chapeloak Investments Limited (the "Property"), whose sole activity is the ownership of the Oakwood Lane Medical Centre in Leeds, for a total consideration of £5.425 million (net assets of £5.425 million).

The Property was completed in 2014 and comprises a modern, purpose built 1,177m2 medical centre. The Property is fully let to a GP practice that serves over 13,500 patients and is amongst the largest practices in the local area and a pharmacy unit. The pharmacy unit within the medical centre benefits from rent reviews linked to RPI. Together the GP Practice and Pharmacy leases have a WAULT of 20.6 years which is accretive to the overall WAULT of the PHP portfolio.

In addition, a wholly owned subsidiary of PHP has contracted to provide development funding for the construction of a purpose-built medical centre in Langwith, Derbyshire for a total cost of £1.8 million (net assets acquired of £1.8 million), which will be transferred to PHP upon its completion. 

The property will be fully let to Derbyshire Community Health Services NHS Foundation Trust (the "Trust") on a 20 year lease which will be accretive to the overall WAULT of the PHP portfolio. The Trust is one of the largest providers of specialist community health services in the country and represents a strong covenant. The Property will be a benefit to the health offering in Langwith providing a range of medical services to the local community.

These transactions increase PHP's portfolio to a total of 315 assets with a gross value of just over £1.5 billion and a contracted rent roll of just under £80 million.

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

"These transactions further grow the portfolio, generating shareholder value by adding to the Group's rent roll and extending its WAULT. They will also benefit not only our shareholders but also our other stakeholders in delivering modern fit for purpose facilities for the provisions of local healthcare services that are easily adapted to meet changing healthcare needs. We have a strong pipeline of opportunities in the UK and Ireland and are well positioned to continue to grow our portfolio and to support the healthcare systems in these markets through the provision of modern, primary care infrastructure."

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

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