Partner Article

Primary Health Properties makes £10.2m acquisition

UK healthcare property provider, Primary Health Properties (PHP) has acquired Apollo Medical Partners Limited (AMP).

The deal is worth approximately £10.2m, and will be settled in £4.2m payable in cash on completion; £1.8m in cash deferred until delivery of assets; and issue of shares to vendors of AMP.

AMP is an investor in primary care and pharmacy properties across the UK, and currently owns 14 properties.

The portfolio is let to General Practitioners, Primary Care Trusts, NHS bodies and pharmacy operators with a weighted average lease length remaining of 18 years.

Lambert Smith Hampton have independently valued at an aggregate of £62.3m, and as part of deal PHP will assume AMP’s £49.8m of fixed cost debt.

Harry Hyman, Managing Director of PHP, said: “This is an important acquisition for PHP which demonstrates our ability to acquire modern, well-let portfolios at cash yields ahead of the current portfolio net initial yield.

“The acquisition adds 14 high quality assets to our existing portfolio, boosts PHPs rental profits and is in line with management’s aim of returning to full dividend cover at the earliest opportunity.”

This was posted in Bdaily's Members' News section by Tom Keighley .