Completion of new banking facility & acquisitions

RNS Number : 8934S

Primary Health Properties PLC

28 November 2011

 



PRIMARY HEALTH PROPERTIES PLC

A specialist REIT providing Primary Care Accommodation for the NHS

Primary Health Properties PLC ("PHP", the "Group" or the "Company") one of the largest providers of modern primary healthcare facilities, today announces the completion of its new banking facility with Aviva and the acquisition of three further primary healthcare assets.

Aviva debt facility

As indicated in the recent Interim Management Statement, a new £75 million, seven year, interest only facility with Aviva has now been documented, closed and fully drawn.  The all-inclusive interest rate is 4%, fixed for the term of the loan.

Bi-lateral debt facilities

The proceeds of the Aviva loan have been used to repay and cancel £30 million of the current Royal Bank of Scotland ("RBS") revolving facility and £20 million of the Allied Irish Bank ("AIB") revolving facility.  The balance of £25 million increases resources available to the Group.

Following the completion of the above transactions on 25 November 2011, the headroom available to the group after deducting existing commitments for forward purchases of £9.5 million is £82 million.

The completion of the Aviva facility and subsequent re-balancing of the current bi-lateral loans facilitates the final phase of renewing the remaining £110 million revolving loan from RBS and the existing £65 million loan from Santander.  Discussions are well progressed to renew these facilities for a prolonged term to commence in the early part of 2012 at floating rates of interest.  This will be well ahead of the current expiry date of January 2013.  It is expected that this will be undertaken before 31 January 2012.

The remaining £30m facility from AIB is expected to continue at its existing margin until its scheduled expiry in January 2013.

The renewal of the facilities with RBS and Santander and the continuance of the AIB facility will mean that will be no requirement to cancel any existing interest rate swaps.

Asset acquisitions

The Group also announces the completion of the acquisition of a fully let, modern medical centre in Grimsby for £7.9 million and the entering into of a commitment to forward purchase new medical centres at Arley in Warwickshire and Ramsgate in Kent for a total of £4.25m.

Harry Hyman Managing Director of Primary Health Properties, commented:

"The Board is delighted to have secured new banking facilities at such competitive rates and it welcomes Aviva as a new banking partner.  As well as assisting the restructuring of existing facilities, Aviva has supported the Board's growth ambitions for the business by proving additional resource for the acquisitions of fresh assets. We look forward to a long and lasting relationship with Aviva."

For further information contact

Harry Hyman/Phil Holland

Primary Health Properties PLC

T [phone]

M+44 (0)7973 344768/ [phone]

[e-mail]/[e-mail]

David Rydell/Victoria Geoghegan/Elizabeth Snow

Pelham Bell Pottinger

T [phone]

This announcement may contain forward looking statements. By their nature forward looking statements involve risk and uncertainty because they relate to future events and circumstances.

These statements reflect the knowledge and information at the time of the release of this announcement. Nothing in this statement should be construed as a profit forecast or estimate

Apart from the information contained in this statement there have been no material events or transactions affecting the Group during the period.

 

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