PHP acquires Surrey property with 20-year NHS lease

Harry Hyman, Primary Health Properties
Harry Hyman, Primary Health Properties

London-based primary health facilities investor Primary Health Properties (PHP) has acquired a clinical facility in Chertsey, Surrey for £6.95 million.

The Surrey and Borders Partnership NHS Foundation Trust has a new 20-year FRI lease on the property, which benefits from RPI-led rent reviews. The trust will be providing drug and alcohol rehabilitation services from the building together with office-based administrative functions.

Constructed in the late 1990’s, the facility has undergone a comprehensive refurbishment, which will also enhance the building’s environmental credentials, to provide clinical accommodation on the ground floor and office space on the upper floors.

This acquisition contributes to the overall portfolio WAULT.

With this transaction, PHP’s portfolio to a total of 522 assets, of which 20 are in Ireland, with a contracted rent roll of £141 million.

Harry Hyman, PHP’s chief executive, said: “We are delighted to be making this acquisition of a healthcare asset that houses services being relocated from the nearby St Peter’s Hospital in line with the NHS’s strategy of moving ancillary services away from hospital settings.

“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.”

Following the announcement, PHP’s shares rose 0.7%, sitting at 149p at the time of writing.

Date published: April 1, 2022

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