Primary Health Properties (PHP) has contracted to fund and acquire its ninth property in the Republic of Ireland.
Under the deal, which has been made via PHP’s Irish investment vehicle Primary Health Properties ICAV, the company will provide development funding for the construction of a new primary care centre in Athy, Co. Kildare, for a total cost of €11.4m.
The centre will comprise 3,975m2 of lettable space and approximately 80% of the rent roll will be contracted to the Health Service Executive (“HSE”) and the Irish government’s child and family agency, TUSLA on 30-year leases. The remainder of the premises will be pre-let to a GP practice, pharmacy, and retail operator.
This acquisition increases PHP’s portfolio to a total of 316 assets, with a gross value of over £1.5bn and a contracted rent roll of just under £80m. The gross value of the Irish portfolio is now approaching €120m of committed capital.
PHP managing director Harry Hyman said: ‘This acquisition will provide a substantial new purpose-built primary care centre and reinforces our progress in growing our Irish portfolio, a market where we see significant potential due to the Irish government’s commitment to modernise the primary care infrastructure and widen the provision of healthcare services in local communities. The acquisition of the completed centre is in line with our strategy of investing in purpose-built centres offering a range of healthcare services and with the majority of the income secured against government backed tenants with a long unexpired term. We have a strong pipeline of acquisitions in the UK and Ireland and are well positioned to continue growing the portfolio in both jurisdictions.’
Construction work is expected to be completed in early 2020.