Primary Health (PHP) will acquire the long leasehold interest of the property on completion of the work for a total cost of £4.1mln The property will be let to the Ashley Surgery for an initial term of 20 years from practical completion. The building will comprise a net internal area of 831 square metres.
The letting will improve the overall weighted average unexpired lease term of the PHP portfolio and provide for a strong government-backed covenant, the FTSE 250-listed primary healthcare facility provider said.
The acquisition will increase PHP's portfolio to a total of 490 assets with a gross value of just over £2.4bn and a contracted rent roll of just over £128mln.
"We are delighted to be able to finance the relocation of an existing long-standing doctors' practice with a patient list of over 9,000 to modern new premises, funded with the proceeds of our successful £100 million placing in September 2019,” said Harry Hyam, the managing director of Primary Health Properties.
“The transaction continues the improvement of the quality of our portfolio by delivering a new facility with a long unexpired lease term and located in a prime location in the commuter town of Epsom. We continue to have a strong pipeline of opportunities in the UK and Ireland and are well-positioned to continue to grow our portfolio,” he added.