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Real Estate

Primary Health Properties sells portfolio of small medical centres

"We are delighted to have been able to achieve such a strong price for this portfolio of medical centres," said company CEO Harry Hyman

Primary Health Properties PLC (LSE:PHP, OTC:PHPRF) has exchanged contracts to sell a portfolio of 13 smaller medical centres, located across England and Wales, for a price of £27.7mln.

The sale price is 13% above PHP's 31 December 2021 book value, which it said represents around 60 basis points (0.6%) of yield compression.

Following completion of the sale, which is anticipated to take place later in July 2022, PHP said its portfolio will comprise 511 assets, of which 20 are in Ireland, with a contracted rent roll of just under £143mln.

Harry Hyman, Primary Health’s CEO, said: "We are delighted to have been able to achieve such a strong price for this portfolio of medical centres, which comprises smaller facilities significantly below our average lot size.

“The disposal will allow us to deploy the proceeds into our strong pipeline across the UK and Ireland which we believe will deliver stronger returns."

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