Primary Health Properties launches £120m equity raising to fund buying spree

Kasmira Jefford
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PHP owns over 275 GP surgeries, with over 90 per cent of income funded by the NHS (Source: Getty)

Primary Health Properties (PHP) has launched a £120m equity raising to help pay down debt and increase its war chest for healthcare property acquisitions.

The listed-company will issue of up to 120m shares at a discounted price of 100p a share compared with yesterday's closing price of 110.50p.

It can also decided to increase the size of the Issue by up to 25 per cent should there be enough demand, which would increase the fundraising to £150m.

PHP invests in healthcare facilities that are then leased back to local NHS organis­ations or GPs and owns a portfolio of £1.1bn properties.

Read More: Tory NHS reforms boost Primary Health Properties

The placing will help fund around £24m of existing development projects as well as its pipeline of £115m acquisitions in the UK and €54m in Ireland.

PHP's managing director, Harry Hyman, said: We are currently seeing more opportunities as the demand for high quality, flexible, modern GP centres continues to grow as the government places greater emphasis on the important role primary care has to deliver increased number of services from the local community.

"The funds raised will be used to finance our existing committed development projects, as well as our current pipeline of opportunities which we are seeing in both the UK and in the Republic of Ireland," he added.

Separately property entrepreneur Nick Leslau's Secure Income Reit has today revealed that it has raised £280m by way of a secondary share placing, which was oversubscribed.

The Reit (real estate investment trust) has a £1.35bn portfolio of properties including some of the UK's top visitor attractions such as Alton Towers and Thorpe Park.

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