Primary Health Properties PLC (LSE:PHP, OTC:PHPRF) shares rose 2.9% to 94.44p after the healthcare property investor confirmed it is in advanced discussions to create a joint venture backed by its private hospital portfolio.
The FTSE 250 group issued a statement in response to recent media speculation, saying it is in talks with an investor about contributing the portfolio to seed a new vehicle.
Primary Health Properties, which owns healthcare real estate across the UK and Ireland, said it has been exploring a range of options to enhance the long-term value of its private hospital assets, including potential joint venture arrangements with third-party investors.
The update appears to provide the clearest indication yet that the company is moving towards a partnership structure for the portfolio, although it stressed that discussions remain ongoing.
The company said any transaction would be subject to the necessary approvals and warned there could be no certainty that a deal will be agreed or on what terms.
Primary Health Properties added that it continues to evaluate all strategic options for the assets and will update the market when appropriate.
Investors welcomed the announcement, with the shares among the stronger performers in London trading after the statement. A joint venture could provide an alternative route to crystallising value from the portfolio while retaining exposure to the underlying assets.
No financial details or valuation metrics were disclosed.
