Primary Health Properties PLC (LON:PHP), one of the UK's leading investors in modern primary healthcare facilities, said it has contracted to provide development funding for the construction and acquisition of a purpose-built primary care centre in Arklow, Co. Wicklow, Ireland for an anticipated total cost of €18.0mln.
In a statement, the FTSE 250-listed firm said agreements for a lease with an initial term of 30 years have been signed with the Health Service Executive and a local GP practice, which will relocate to the centre on practical completion.
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The group noted that the lettings will be accretive to the overall WAULT of its portfolio and will provide for approximately 90% of the income from strong government-backed covenants.
The building, which will comprise an area of 5,333 square metres, is to be constructed to the new Nearly Zero-Energy Buildings regulations in Ireland.
The acquisition will increase Primary Health Properties' portfolio to a total of 511 assets, of which 17 are in Ireland, with a gross value of just under £2.5bn and a contracted rent roll of £132mln.
Harry Hyman, managing director of Primary Health Properties commented: "We are delighted to announce this transaction, one of a number of development projects the Group is pursuing at present in the UK and Ireland.
“The property, which is due for practical completion at the end of 2021, will support both the HSE's strategy of healthcare provision in Ireland and PHP's strategy of delivering modern healthcare facilities let on long lease terms to tenants with a secure covenant.”
He added: “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."