Fladgate LLP has advised the owners of Primary Health Care Centres Limited (PHCC) on their sale of PHCC to Primary Health Properties PLC (PHP). PHP is the UK’s leading investor in modern primary healthcare facilities.
PHCC owns 11 primary care properties, all of which are fully let generating a rent roll of £1.7m. PHP acquired the shares in PHCC for a consideration of approximately £10.2m. In addition, PHP assumed PHCC’s £17.8m of fixed cost debt and net cash balances of £1.5m, giving a total asset acquisition cost of £26.8m, including transaction costs, reflecting a net initial yield to PHP of 6.2 per cent.
The portfolio, which is located across mainland UK, is let to General Practitioners, NHS bodies and pharmacy operators. PHP believes that the acquisition adds high quality assets to its existing portfolio which now comprises 197 primary care properties with a total contracted rent roll of £41.3m.
The Fladgate team was led by corporate partner Amy Collins and real estate partner Mark Saunders, assisted by real estate senior associate Nick Mumby.
Commenting on the transaction, Amy Collins said: “We are delighted to have advised our long standing clients on the sale of this portfolio, a transaction which enabled us to draw upon our corporate real estate expertise and many years’ experience of advising clients investing in the primary health care sector.”