Primary Health completes £70m 12-year bond as rent roll rises

Kasmira Jefford
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PRIMARY Health Properties said yesterday it has completed the raising of a floating rate £70m bond as it reported strong occupancy and rents in the third quarter of the year.

The company, which buys primary health care premises and leases them back to NHS doctor surgeries, said the 12-year bond was raised at a margin of 220 percentage points over Libor and will be used to repay loans including a facility with Clydesdale Bank that expires next year.

The bond comes after Primary Health tapped investors for £60m through a share placing in May to help fund acquisitions.

In an interim statement for the three months to 4 November, Primary Health made five new acquisitions totalling £48.7m and £64m in the year to date.

The portfolio was almost fully let with occupancy at 99.7 per cent and generated an annualised passing rent roll of £42.9m at 4 November compared with £39.7m at 30 June 2013.

Meanwhile the Aim-listed company also announced that it has won a contract to fund and buy a new medical centre in Bristol.

The new centre will be fully let upon completion to five GP practices for an initial 21 year term and will cost £3.1m to develop.