PHP buys London medical centre for £34.5m

Primary Health Properties (PHP), a real estate investment trust which invests in modern primary healthcare facilities, has acquired the Chiswick Medical Centre in London for a total of £34.5 million.

The property is fully let to healthcare provider HCA International with an unexpired term of just under 20 years and five-yearly annually compounded RPI-led rent reviews.

The facility provides services and teams specialising in neurology, cardiology, orthopaedics, urology and gastroenterology as well as women’s healthcare services and a dedicated children’s unit.

The transaction follows PHP’s announcement on 11 April of its first net-zero carbon direct development in Eastergate, West Sussex, with a gross development value of £6.7 million.

The Chiswick Medical Centre deal will increase PHP’s portfolio to a total of 524 assets, of which 20 are in Ireland, with a contracted rent roll of just under £143 million.

Harry Hyman, PHP’s chief executive said: “We are delighted to have acquired this state-of-the-art diagnostic centre in London, let to an excellent covenant which provides a wide range of services which alongside the NHS is assisting with tackling
the significant backlog of referrals following Covid-19.

“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 deal announcement, PHP shares are up 0.9% sitting at 151p at the time of writing.

Date published: April 19, 2022

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