Primary Health Properties (PHP) has agreed to acquire a five-floor medical and office facility in the north east of England for £10m.
The property is currently undergoing major refurbishment and will be let to an NHS tenant under a long-term lease with index-linked rent reviews.
The deal will take PHP’s portfolio to a total of 521 assets, of which 20 are in Ireland, with a contracted rent roll of over £140m.
PHP CEO Harry Hyman said the company was well-positioned to continue growing its portfolio, with a strong pipeline of opportunities in both the UK and Ireland.
‘We are delighted to be making this acquisition of a newly refurbished building, comprising a mix of clinical space, delivering important NHS services in the area, and ancillary office accommodation on a long-lease. The refurbishment of the building will include the installation of an entirely electric energy system allowing the tenant to power the building from entirely renewable sources and significantly improve the environmental performance.’
The acquisition will complete when the refurbishment is finished, which is expected to occur in Q2 2022.