Primary Health Properties to acquire new Kew medical centre for £4.6mn – Following its merger with MedicX Fund, Primary Health Properties (PHP) has announced that forward funding is in place for it to acquire a new primary healthcare medical centre in Kew, London. The property is due to be completed in October 2019 and will have a net internal area of approximately 845m2 for a total cost of £4.6 million.
GPs to be main tenants
The main tenant of the completed development will be the GPs of the North Road Surgery on a 25 year lease with three yearly reviews to market rent. A social prescribing charity, CWC, is taking a five year lease of the remaining area.
Centre follows MedicX merger completion
The acquisition increases PHP’s total portfolio, following completion of the merger with MedicX, to 484 assets, of which seven are currently under construction, with a gross value of over £2.3 billion and a contracted rent roll of over £125.0 million.
The merger between the two real estate investment trusts was agreed in late January 2019, with existing MedicX shareholders receiving 0.77 new shares for each existing MedicX share they held. The deal sees PHP owning 69% of the new entity. PHP has previously said that respective portfolios of the merged entity are highly complementary and the combined business will represent a stronger platform with increased scale and financial resources for further investment into its NHS-supporting estate.
At around 90%, the NHS accounts for the vast majority rental income generated by the original PHP portfolio, with pharmacies picking up most of the rest.
PHP/MXF: Primary Health Properties to acquire new Kew medical centre for £4.6mn