PHP continues to expand portfolio

PHP has acquired the Oakwood Lane Medical Centre in Leeds

Primary Health Properties has continued to enlarge its portfolio with the acquisition of Chapeloak Investments Ltd for £5.4m.

Chapeloak owns the Oakwood Lane Medical Centre in Leeds – a 1,177m2 medical property, which was purpose built in 2014 and is fully let to one of the largest GP practices in the area.

Last month, PHP announced plans to merge with fellow specialist REIT MedicX in a deal that will create a business with a £2.3bn portfolio. Both companies have focused on developing high value properties and leading assets in their localities, with an average lot size £4.8m.

As well as a GP practice, the Oakwood Lane Medical Centre comprises a pharmacy, with rent reviews linked to RPI. Combined, the GP Practice and pharmacy leases have a WAULT of 20.6 years, which will be accretive to the overall WAULT of PHP’s portfolio.

PHP also announced that a wholly-owned subsidiary has contracted to provide development funding for the construction of a purpose-built medical centre in Langwith, Derbyshire for a total cost of £1.8m. The property will be fully let to Derbyshire Community Health Services NHS Foundation Trust on a 20-year lease.

The transactions increase PHP’s portfolio to a total of 315 assets with a gross value of just over £1.5bn and a contracted rent roll of just under £80m.

PHP managing director Harry Hyman said: ‘These transactions further grow the portfolio, generating shareholder value by adding to the Group’s rent roll and extending its WAULT.  They will also benefit not only our shareholders but also our other stakeholders in delivering modern fit for purpose facilities for the provisions of local healthcare services that are easily adapted to meet changing healthcare needs.  We have a strong pipeline of opportunities in the UK and Ireland and are well positioned to continue to grow our portfolio and to support the healthcare systems in these markets through the provision of modern, primary care infrastructure.’