5th Nov 2013 11:30
LONDON (Alliance News) - Primary Health Properties PLC Tuesday said it has made five new acquisitions since June and completed a floating-rate bond issue raising GBP70 million on a secured basis at a margin of 220 basis points over LIBOR for a 12-year term.
In an interim management statement for the period July 1 to November 4, the healthcare facilities investor said its new acquisitions, which included Primary Health Care Centres Limited (PHCC) for GBP10.5 million, have long-term net asset value growth potential.
PHP said the proceeds of its new bond will be received in two tranches.
The first tranche of GBP60 million to be received immediately and will be used to refinance a facility with Clydesdale Bank PLC that was to expire in early 2014, as well as Aviva loans acquired with the PHCC acquisition.
It will also be used to refinance a tranche of the group's club facility with Royal Bank of Scotland PLC and Santander Banking Group.
A second tranche of GBP10 million will become available on June 30, 2014 as a committed development is completed. PHP said the bond issue does not impact its existing interest-rate hedging portfolio.
Overall, annualised passing rent roll of the group's completed portfolio as of Monday was GBP41.4 million, up from GBP31.4 million at the end of June. Passing rent is the contractual rent received from a tenant, as opposed to market-rate rents.
PHP attributed the increase to delivery of new assets, the letting of expansion space areas within the previously acquired Apollo portfolio, and rent increases from reviews completed in the period.
The real estate investment trust paid an interim dividend of 9.5 pence per share to shareholders on November 1. PHP said it has paid a total of 19.0 pence per share so far in 2013, up from 18.5p in 2012.
The stock was trading at 325.38 pence Tuesday morning, up 3.63 pence or 1.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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