Primary Health Properties PLC (PHP.L), a leading investor in primary healthcare facilities in the UK and Ireland, has acquired a Health & Wellbeing Clinic in Cork, Ireland, for €22 million. This addition expands PHP's Irish portfolio to 22 properties, enhancing its urgent care and diagnostic capabilities.
The clinic is fully leased to Laya Healthcare, a subsidiary of AXA, on a Full Repairing and Insuring or FRI lease with over 12 years remaining. The lease includes fixed rental uplifts in 2027 and 2032, ensuring stable revenue, with an earnings yield of 7.1%.
PHP's CEO, Mark Davies, highlighted the facility's advanced medical technology and comprehensive healthcare services. He emphasized the growing importance of diagnostics in healthcare and credited the acquisition to strong local partnerships.
The facility underwent a €5.5 million fit-out, managed by Axis PHP, reinforcing PHP's investment in sustainable and high-quality healthcare infrastructure.
With a £2.8 billion portfolio comprising 517 assets and generating over £155 million in rent, PHP maintains efficient financial management with industry-leading cost ratios. Around 90% of its long-term leases are backed by government entities such as the NHS in the UK and HSE in Ireland, ensuring strong security.
PHP's Irish expansion has been strengthened by its 2023 acquisition of Axis Technical Services, leading to the formation of Axis PHP. The company remains committed to responsible growth and aims to achieve Net Zero Carbon by 2030.
This acquisition aligns with PHP's strategy to address rising demand for primary care, driven by ageing populations and healthcare system pressures.
PHP.L is currently trading at $94 or 2.4% higher on the London Stock Exchange.
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