11th May 2020 10:27
(Alliance News) - Primary Health Properties PLC on Monday said it has acquired a portfolio comprising 20 medical centres for GBP47.1 million before transaction costs.
The primary healthcare facilities investor said it also has conditionally agreed to buy two additional medical centres for GBP6.9 million.
Primary Health Properties said the acquired properties - located across England and Wales - are leased to GP practices, other NHS healthcare operators, and pharmacies. It added that around 91% of rental income is being backed by the UK government with all of the leases set to be reviewed every three years.
This acquisition takes the company's UK and Ireland assets to 510, worth a total of around GBP2.5 billion with a contracted rent roll of GBP131 million. Following completion, Primary Health Properties has undrawn loan facilities and cash totalling GBP289 million.
"We are delighted to be able to acquire this attractive portfolio of medical centres, with potential for enhancing their valuations through asset management activity. We believe that the portfolio presents several good opportunities to enlarge the premises, extend the lease terms and obtain an uplift in rent, as the majority of the medical centres represent key facilities within their local healthcare economy," said Managing Director Harry Hyman.
Separately, Primary Health said that that rent collection for its second quarter has remained "robust" with 98% of the amounts due in the UK already collected. In Ireland, 97% of rents due by April 1 have already been collected.
The stock was trading 0.3% higher at 157.40 pence each on Monday morning in London.
By Ife Taiwo; [email protected]
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