Acquisition

RNS Number : 0872O

Primary Health Properties PLC

23 June 2010

 



Primary Health Properties PLC ("PHP" or the "Group")

Acquisition of Health Investments Ltd

Primary Health Properties PLC, one of the UK's largest providers of modern, purpose built primary healthcare facilities, announces that it has unconditionally agreed to acquire the entire issued share capital of Health Investments Ltd ("HI"), a provider of primary care and pharmacy properties with a UK wide portfolio.

The consideration payable of approximately £11.7 million is to be satisfied by the issue to the vendors of HI of 1,005,153 new Ordinary shares of 50p each in the capital of PHP (representing 25 per cent of the consideration) at a value of 290p per share amounting to approximately £2.9 million with the remainder of approximately £8.8 million being paid in cash.  The Consideration Shares will be subject to a six month lock-in and subsequent 12 month orderly market agreement. 

Application is being made to the UK Listing Authority for admission of the Consideration Shares to the Official List and to trading on the London Stock Exchange. It is expected that admission will become effective and dealings in such shares will commence on or after 25 June 2010.

Following admission of the Consideration Shares, the total number of ordinary shares in the capital of PHP with voting rights in issue will be 62,571,174.

In addition to the consideration payable, HI has approximately £28.1 million of debt which, net of a mark-to-market adjustment of £0.9 million, has been assumed by PHP as part of the acquisition. The assumed debt has a weighted life of approximately 19 years. The HI debt assumed will be incremental to the Group's existing debt facilities. The combined enterprise value of the assets being purchased, including the Consideration Shares, cash paid and assumed debt is £39 million.

HI owns 14 primary care properties which have an appraised valuation of £39 million. The current rent roll equates to £2.4 million, reflecting a net initial yield of 6.1 per cent. The portfolio is of a high quality and is 100 per cent. let to General Practitioners, Primary Care Trusts, NHS bodies and pharmacy operators with the weighted average lease length being in excess of 19 years.

Rental income is derived 91% from the NHS with the remainder from strong covenant pharmacy operators. The properties are located primarily in the south east of England.

PHP believes that the acquisition is significant in that it adds a high quality well-let portfolio to its existing asset base and reflects the fact that the Group is able to acquire premium assets at favourable valuations in the current economic climate.

Harry Hyman, Managing Director of PHP, said:

"This is an important acquisition for PHP which adds significant assets to complement our existing properties and increases our total portfolio size by more than ten per cent. The properties boost our portfolio in gross asset terms and further demonstrates our commitment to the strategy of enlarging our asset base rapidly through a series of targeted acquisitions."

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

Further details:

Harry Hyman Managing Director Primary Health Properties PLC	Mobile: [phone]
Tim Walker-Arnott Director  Nexus Property Management Services Ltd	Tel: [phone] Mobile: [phone]
David Rydell / Victoria Geoghegan Pelham Bell Pottinger	Tel: [phone]

 

END

 

 

ACQUORVRRRANURR