Health property firm internalises management with £33m acquisition

A London health property firm has announced that it is positioning itself for growth as it invests £33m in a new acquisition.

Primary Health Properties (PHP) reported today that it has entered into a conditional share purchase agreement to acquire its external property advisor Nexus Tradeco Holdings Ltd.

The deal, which is worth £33.1m, will internalise the company’s management and save it approximately £4m every year.

The company said that the deal could make it more attractive to clients, and it believes that it will drive the next stage of PHP’s growth.

Steven Owen, chairman of PHP, commented: “We believe that now is the right time to internalise this relationship and secure the well-regarded people, systems and structure of the Nexus operations, in a move which will deliver material financial and operational benefits to PHP.

“The new structure will deliver material annual cost savings, driving immediate EPRA EPS enhancement to further shareholder returns, whilst simultaneously broadening our appeal to a wider investment community.

“Exacerbated by the disruption seen this year, demand for new and improved primary care centres to alleviate pressure on hospitals and A&E departments is at an all-time high.

“We believe that acquiring Nexus will help position PHP to play a key role in these opportunities, underpinning the next stage of the company’s growth and benefitting the long term future of the business.”

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