Acquisition

RNS Number : 7942G

Primary Health Properties PLC

08 February 2010

 



8 February 2010

Primary Health Properties PLC

("PHP" or the "Group")

Acquisition

Primary Health Properties PLC, one of the UK's largest providers of modern, purpose built primary healthcare facilities announces that its subsidiary, Primary Health Investment Properties Ltd, has acquired Sinclair Montrose Properties Limited ("SMP"), a wholly owned subsidiary of CareCapital Group plc, the healthcare real estate developer and investor. SMP owns a UK wide portfolio of fourteen modern medical centres. The consideration is approximately £23.5 million including the repayment of debt secured on the portfolio, payable in cash on completion. The costs of the acquisition are being financed from PHP's existing cash facilities. The total cost to PHP is £24.2 million.

The properties are located at Chafford Hundred, Edinburgh, Wingate, Watlington, Burnley, Ipswich, Leamington Spa, Chalford, Southampton, Lydney, Hinckley, Hornchurch, Consett and Darlington. The total rent roll including outstanding rent reviews is approximately £1.5 million per annum.

All fourteen investments are fully let for occupation by General Practitioners, Primary Care Trusts, NHS bodies and Pharmacy Operators with an average weighted unexpired lease term of 17.8 years. In addition a number of these properties have surplus land available for future gains through active asset management.

As part of the deal PHP has the right of first refusal on all primary care property developments brought forward by CareCapital Group for a period of three years from completion. There are seven existing identified projects at various stages of negotiation.

Harry Hyman, Managing Director of PHP said:

"This is a significant acquisition for PHP, and is the second largest portfolio we have acquired. The fourteen properties will boost our portfolio in gross asset terms and 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]

 

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