Primary Health Properties PLC (LON:PHP), one of the UK’s leading investors in modern primary healthcare facilities, announcesdthat it has contracted to fund and acquire a purpose built primary care centre in the Republic of Ireland.
Primary Health Properties ICAV, an Irish investment vehicle wholly owned by PHP, has contracted to provide development funding for the construction of a new primary care centre in Athy, Co. Kildare, for a total cost of €11.4 million (net assets acquired €11.4 million).
The centre will comprise 3,975m2 of lettable space and approximately 80% of the rent roll will be contracted to the Health Service Executive (“HSE”) and TUSLA on 30 year leases. The HSE is the Irish government’s executive agency which provides Ireland’s public health services in communities across the country and TUSLA is the Irish government’s Child and Family agency. The remainder of the premises will be pre-let to a GP practice, pharmacy, and retail operator. Construction work is expected to be completed in early 2020.
This acquisition, PHP’s ninth in Ireland, increases PHP’s portfolio to a total of 316 assets, with a gross value of over £1.5 billion and a contracted rent roll of just under £80 million. The gross value of the Irish portfolio is now approaching €120 million of committed capital.
Harry Hyman, Managing Director of Primary Health Properties, commented:
“This acquisition will provide a substantial new purpose built primary care centre and reinforces our progress in growing our Irish portfolio, a market where we see significant potential due to the Irish government’s commitment to modernise the primary care infrastructure and widen the provision of healthcare services in local communities. The acquisition of the completed centre is in line with our strategy of investing in purpose built centres offering a range of healthcare services and with the majority of the income secured against government backed tenants with a long unexpired term. We have a strong pipeline of acquisitions in the UK and Ireland and are well positioned to continue growing the portfolio in both jurisdictions.”
