PHP sells off smaller facilities

PHP CEO Harry Hyman

Primary Health Properties (PHP) has exchanged contracts to sell a portfolio of 13 smaller medical centres located across England and Wales for £27.7m.

The sale price is 13% above PHP’s 31 December 2021 book value, representing around 60bps of yield compression.

Completion is expected to take place before the end of this month and will leave the specialist healthcare REIT with a portfolio of 511 assets, of which 20 are in Ireland, with a contracted rent roll of just under £143m.

Commenting on the deal, PHP CEO Harry Hyman said: ‘We are delighted to have been able to achieve such a strong price for this portfolio of medical centres, which comprises smaller facilities significantly below our average lot size. The disposal will allow us to deploy the proceeds into our strong pipeline across the UK and Ireland which we believe will deliver stronger returns.’

PHP is due to announce its interim results for the six months ended 30 June 2022 on Wednesday 27 July.