13th Jun 2006 07:01
Primary Health Properties PLC13 June 2006 Primary Health Properties PLC ('PHP' or 'The Company') Proposed conversion to REIT status Primary Health Properties, one of the UK's largest providers of modern primaryhealthcare facilities, announces today that it intends to convert to REIT statusat the earliest available opportunity. The conversion is dependent uponfinalisation of the Government's proposed REIT legislation detailed in thisyear's Finance Bill. To enter the new REIT regime, PHP will be required to make a conversion paymentequal to 2% of the value of its UK property assets as at 31 December 2006 andwill subsequently be exempt from corporation tax on UK rental income and capitalgains from UK property sales. Under the proposed legislation, PHP will berequired to pay dividends to shareholders at a level of at least 90% of thetax-exempt income - a position that is in accordance with its existing dividendpolicy. Managing Director, Harry Hyman, said: 'We are enthusiastic about the opportunities and benefits REIT status presentsto PHP and its investors. Subject to final approval of the Governmentsproposals in their current form, we intend to convert as soon as is practicalafter January 1st 2007. I am confident that the Company will continue tofulfill its primary objectives under REIT status: the generation of rentalincome and capital growth through investment in primary health care property andthe return of value to shareholders.' -ends- Enquiries: Bell Pottinger Corporate & FinancialDavid Rydell/Kate Ruck KeeneTel: 020 7861 3232 Primary Health Properties PLCHarry Hyman, Managing DirectorTel: 01483 306912Mobile: 07973 344768 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Primary Health