22nd Dec 2006 09:17
Primary Health Properties PLC22 December 2006 For immediate release22 December 2006 Primary Health Properties plc Acquisition of CHH Ltd for £39.2 million Primary Health Properties PLC (FTSE: PHP), the provider of modern primaryhealthcare facilities, is pleased to announce that it has exchanged contracts toacquire CHH Ltd ("CHH") for a total cash consideration of £39.225 million. CHHis the holding company of a group of companies that owns nine primary healthcarefacilities across the UK which will be incorporated into an enlarged PHPportfolio and managed by existing PHP resources. The costs of the acquisition are being financed from existing cash facilities. Of the nine centres, three are still under construction and are anticipated tobe completed by the end of 2007. In addition, two of the completed facilitiesare undergoing extension work, which is expected to be finished at the same time The consideration for the acquisition is structured so that an initialconsideration of approximately £31 million is paid on completion, with thebalance to be satisfied once development work on all the facilities has beencompleted. It is anticipated the balance of the consideration will be paid overthe next 12 months. The total gross assets being acquired once fully developed amounts to £39.225million. These assets will generate a total rental income of approximately £2.0million., reflecting an initial yield of approximately 5%. Following the purchase, PHP will have increased its property portfolio to 95primary care facilities, generating rental of approximately £14.4 million perannum. PHP continues to benefit from its strong links with Primary Care propertydevelopers and will look to maintain this acquisition strategy followingconversion into a REIT in January 2007. Managing Director, PHP, Harry Hyman commented: "We are delighted with the acquisition. We have long held the view that tocontinue to lead the market we must find new ways to enhance shareholder value.These medical centres will further improve our portfolio and help us to advancethe standard of primary health care facilities in the UK." -ends- Enquiries: Bell Pottinger Corporate & FinancialDavid Rydell/ Victoria Geoghegan Tel: 020 7861 3232 Primary Health Properties PLCHarry Hyman, Managing Director Tel: 01483 306912 Notes to editors: The nine primary healthcare facilities in the acquistion portfolio are: St George's Medical Centre, Sheerness, KentHetherington Group Practice, London, SW4Lamps Court Surgery, London, SE5Hailey View Surgery, Hoddesdon, HertsSt. Stephen's Gate Medical Centre, Norwich, NorfolkRobin Hood Lane Health Centre, Sutton, Surrey (completion March 2008)Milton Keynes Medical Centre, Milton Keynes, BedsSheerness Medical Centre, Sheerness, Kent (completion end 2007)Dumbledore Primary Care Centre, Handcross, Sussex (completion end 2007) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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