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Primary Health Properties secures funding deal for Mountain Ash primary care centre

The new facility, located in Wales, will expand PHP’s portfolio to 485 assets with a value of just under £2.4bn and rent roll of £127mln

Primary Health Properties PLC - Primary Health Properties secures funding deal for Mountain Ash primary care centre
Mountain Ash will contain two GP practices and accommodate 11,500 patients

Primary Health Properties PLC (LON:PHP) has agreed a £4.92mln funding deal for the construction of a new primary care centre at Mountain Ash in Wales.

The FTSE 250-listed healthcare facility builder said the property, which will contain two GP practices and accommodate 11,500 patients, will be wholly-owned after completion and then let to the Cwm Taf Morgannwg University Local Health Board for an initial term of 25 years.

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Mountain Ash will also expand PHP’s portfolio to 485 assets with a value of just under £2.4bn and a contracted rent roll of around £127mln.

"We are delighted to announce this transaction, one of a number of development projects the Group is pursuing at present and which can be funded with the proceeds of our recent successful £100mln placing”, said Harry Hyman, PHP’s managing director.

“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", he added.

Analysts at Liberum, which rate PHP at ‘hold’ with a 130p target price, said they expected the company’s portfolio to benefit from “long-term structural growth, driven by a growing and ageing UK population coupled with efforts to improve the efficiency and cost effectiveness of the NHS by expanding the scope of services provided by GPs”.

In mid-morning trading on Monday, PHP shares were 0.1% lower at 141.9p.

--Adds broker comment and share price--

Quick facts: Primary Health Properties PLC

Price: 153 GBX

LSE:PHP
Market: LSE
Market Cap: £1.86 billion
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