Primary Health Properties PLC (LON:PHP) has acquired three modern, purpose-built primary care centres in the Republic of Ireland.
The investor in primary healthcare facilities said the acquisitions increase the gross value of the Irish portfolio to more than €100 million.
READ: Primary Health Properties expands Irish portfolio with construction funding contract
The company has paid €38.6mln for the company that owns the assets, one of which is in Dublin while the other two are in commuters towns near the Irish capital city.
All three properties are fully let, Primary Health revealed. The HSE, the Irish government's executive agency, and other government bodies including TULSA & the Kildare Wicklow Education Training Board account for circa 63% of the total rent roll at the properties, which have a combined unexpired lease term of roughly 21 years. The balance is from Centric Health, a leading UK and Irish Primary healthcare provider, and pharmacies.
"We are delighted to acquire these assets which have significantly increased the size and value of our portfolio in Ireland, and where we anticipate continuing to expand, as our acquisition programme gathers momentum,” said Harry Hyman, the managing director of Primary Health.
“We are committed to the Irish market where we see significant potential due to the need to modernise the primary care infrastructure and widen the provision of health care services,” he added.
The acquisition was Primary Health’s eighth in Ireland and increases its portfolio to 313 assets, with a gross value of more than £1.4bn and a contracted rent roll in excess of £75mln.
“The acquisition is in line with our target acquisition profile, as the majority of rental income is secured against a government-backed tenant with a long unexpired lease 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," Hyman said.
RNS 05/09/18: Irish Portfolio grows to over EUR 100 million. Read more https://t.co/8r1YmNZfgp #PHPREIT $PHP
— Primary Health Properties (PHP) plc (@PHPReit) September 5, 2018