Primary Health Properties plc in £20m deal to fund and acquire Irish healthcare scheme

London-based real estate investment trust Primary Health Properties plc (PHP) has signed a deal to fund and acquire a new primary care centre (PCC) in Ireland.

PHP’s Irish investment vehicle, Primary Health Properties ICAV, will provide €22.3m (c.£19.7m) in development funding for the construction of a centre in Bray, County Wicklow.

The facility will span approximately 52,000 sq ft of lettable space. Around 70% will be let on a 25-year lease to the Irish government’s Health Service Executive agency, which provides health services in communities across the country.

Remaining space will be occupied by a GP practice, pharmacy, coffee shop and car park operator.

This acquisition is PHP’s fifth in the Republic of Ireland. It increases the company’s portfolio to a total of 310 assets worth more than £1.395bn.

PHP managing director Harry Hyman said: “This acquisition will provide a substantial new purpose built PCC in suburban Dublin and reinforces our progress in growing our Irish portfolio.

“This acquisition is in line with our strategy of investing in purpose built centres offering a range of healthcare services and with the majority of the income secured against a government backed tenant with a long unexpired term.”

He added: “We have a strong pipeline of acquisitions in the UK and Ireland and are well positioned to continue growing the portfolio in both jurisdictions.”

Construction of the centre is due for completion by Autumn 2019.