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Company Primary Health Properties PLC
TIDM PHP
Headline

Acquisition of Primary Health Care Centres

Released 07:00 02-Jul-2013
Number 3459I07

RNS Number : 3459I
Primary Health Properties PLC
02 July 2013
 



 

2 July 2013

 

Primary Health Properties PLC

 

Acquisition of Primary Health Care Centres Limited

 

Primary Health Properties PLC ("PHP"), the UK's leading investor in modern primary healthcare facilities, announces that it has unconditionally agreed to acquire the entire issued share capital of Primary Health Care Centres Limited ("PHCC"), an investor in primary care and pharmacy properties in the UK.

 

PHCC owns 11 primary care properties, all of which are completed and fully let generating a rent roll of £1.7 million.  The assets have been acquired at a total cost of £26.8 million, including transaction costs, reflecting a net initial yield to PHP of 6.2 per cent.

 

This portfolio is let to General Practitioners, NHS bodies and pharmacy operators with a weighted average lease length remaining of 19.3 years.  Rental income is derived 97% directly or indirectly from the NHS with the remainder largely from pharmacy operators. The properties are located across mainland UK.

 

In addition to the consideration payable, PHP will assume PHCC's £17.8 million of fixed cost debt.  The assumed debt has a weighted life of approximately 13.8 years and will be incremental to the Group's existing debt facilities.

 

PHP will look to re-set or refinance this debt at the earliest opportunity to lock in to current low interest rates available in the market. Allowance has been made by the vendor within the purchase price for a proportion of the cost of repaying the underlying loans. 

 

PHP believes that the acquisition adds high quality assets to its existing portfolio and increases its recurring income surplus which will reduce the proportion of its current dividend that is partially uncovered by earnings.  With the acquisition of PHCC, PHP has now acquired or committed to acquire 16 assets in 2013 for a total of £46.3 million.  Following completion, PHP's portfolio now comprises 197 primary care properties with a total contracted rent roll of £41.3 million.

 

Harry Hyman, Managing Director of PHP, said:

 

"We are delighted to complete the acquisition of this strong portfolio with its long term, secure rental stream.  This further demonstrates our ability to quickly invest the proceeds of our recent £68.5 million equity issue into transactions that are accretive to PHPs rental profits in line with management's aim of returning to full dividend cover at the earliest opportunity."

 

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

 

For further information please contact:

 

Harry Hyman
Managing Director
Primary Health Properties PLC

Tel: 020 7451 7050

Phil Holland
Deputy Managing Director
Nexus TradeCo Limited

Tel: 020 7451 7050

 

Tim Walker-Arnott
Property Director
Nexus TradeCo Limited

Tel: 01483 749033

David Rydell / Victoria Geoghegan / Elizabeth Snow
Pelham Bell Pottinger

Tel: 0207 861 3821



 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Acquisition of Primary Health Care Centres - RNS