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LONDON - Primary Health Properties PLC (LSE:PHP), a leading investor in modern primary healthcare facilities in the UK and Ireland, has announced the acquisition of a Health & Wellbeing Clinic in Cork, Ireland, for €22 million. This strategic purchase adds a state-of-the-art facility with urgent care and diagnostic capabilities to PHP’s growing portfolio, which now includes 22 properties in Ireland.
The newly acquired clinic is fully leased to Laya Healthcare, a subsidiary of AXA, on a Full Repairing and Insuring (FRI) lease with over 12 years remaining. The lease agreement includes fixed rental uplifts scheduled for 2027 and 2032, providing a stable and predictable revenue stream for PHP. The investment boasts an attractive and accretive earnings yield of 7.1%.
PHP’s CEO, Mark Davies, expressed satisfaction with the acquisition, underscoring the clinic’s advanced medical technology and comprehensive range of healthcare services. He noted that diagnostics are expected to be crucial in the future of healthcare and that the purchase was facilitated through strong local relationships.
The Cork facility has undergone a significant €5.5 million fit-out, managed by Axis PHP, the Group’s market-leading team in Ireland. This fit-out reflects PHP’s commitment to investing in sustainable and high-quality healthcare infrastructure.
With a portfolio valued at £2.8 billion, PHP manages 517 healthcare assets, generating a robust rent roll of over £155 million. The company’s internal management team is recognized for its efficient financial management, boasting one of the lowest peer cost ratios in the industry.
PHP’s focus on long-term leases, approximately 90% of which are directly or indirectly backed by government entities such as the NHS in the UK or HSE in Ireland, offers unique security. The Group’s expansion in Ireland is further bolstered by the 2023 acquisition of Axis Technical Services, which led to the creation of Axis PHP.
The Board of PHP remains committed to responsible growth, with a clear plan to transition to Net Zero Carbon by 2030, reflecting the company’s dedication to sustainability in its operational, development, and asset management activities.
This acquisition aligns with PHP’s strategy to capitalize on the growing need for front line primary care, driven by ageing populations and increasing pressure on healthcare systems. The information about this acquisition is based on a press release statement.
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