Primary Health Properties (LON:PHP), one of the UK’s leading investors in modern primary healthcare facilities, has announced that it has contracted with a developer to fund the development and acquisition of a purpose-built primary care centre in Mountain Ash, Rhondda Cynon Taf, Wales.
A wholly owned subsidiary of PHP has contracted to provide development funding for the construction of the property for a total cost of £4.92 million (net assets acquired of £4.92 million), which will be wholly owned by PHP upon its completion.
The property will be let to Cwm Taf Morgannwg University Local Health Board for an initial term of 25 years. The centre will accommodate 2 local GP practices, having a combined patient list of 11,500 patients, and provide a range of Local Health Board services (including District Nurses, Health Visitors, public health and other community services). The letting will be accretive to the overall WAULT of the PHP portfolio and provide for a strong government backed covenant.
The building which will comprise an area of 1,253m2 is to be constructed to a high specification and the developer is contracted to achieve a BREEAM “Excellent” rating.
This acquisition will increase PHP’s portfolio to a total of 485 assets with a gross value of just under £2.4 billion and a contracted rent roll of just under £127 million.
Harry Hyman, Managing Director of Primary Health Properties, commented:
“We are delighted to announce this transaction, one of a number of development projects the Group is pursuing at present and which can be funded with the proceeds of our recent successful £100 million placing. The transaction improves the quality of our portfolio by delivering a new facility with a long unexpired lease term, built to the highest environmental standards. We have a strong pipeline of opportunities in the UK and Ireland and are well positioned to continue to grow our portfolio and to support the healthcare systems in these markets through the provision of modern, primary care infrastructure.”
More information on Primary Health Properties can be found on www.phpgroup.co.uk