Primary Health Properties PLC (LSE:PHP, OTC:PHPRF) has signed agreements for its first net-zero carbon (NZC) direct development.
The investor in modern primary healthcare facilities said the NZC development will be a new purpose-built facility in Eastergate, West Sussex, with a gross development value of £6.7 million.
The new building will be one of the first UK healthcare buildings to achieve this status, the company said. The development has been let to both a general practitioner practice and the local pharmacy for a 25-year term.
This transaction will increase PHP's portfolio to a total of 523 assets, of which 20 are in Ireland, with a contracted rent roll of over £141 million. Work is expected to commence imminently with practical completion expected in the second quarter of next year.
“Starting work on our first NZC direct development is a significant achievement and demonstrates our strategic commitment to transitioning all our operational, development and asset management activities to NZC by 2030 and to help our occupiers achieve NZC by 2040 as set out in our recently announced NZC Framework,” said Harry Hyman, the chief executive officer of Primary Health Properties.
"This development is the first in our strong pipeline of £163 million of direct development opportunities providing short-cycle and de-risked development activity, adding high quality assets to the portfolio and capturing attractive development margins,” he added.