Primary Health Properties (PHP), has acquired a portfolio of 20 purpose-built medical centres for £47.1m.
The company, which owns a portfolio of primary healthcare facilities, has also conditionally contracted to acquire a further two medical centres for £6.9m.
The acquired properties are leased to GP practices, other NHS healthcare operators and pharmacies, with around 91% of the rental income being government backed. All of the leases are reviewed to the open market on a three-yearly cycle.
The acquisition will increase PHP’s portfolio in the UK and Ireland to a total of 510 assets with a gross value of just under £2.5bn and a contracted rent roll of £131m.
PHP also announced its rent collection rate during the covid-19 crisis. In the UK it has received 98% of rents for the second quarter of the year, with £0.7m still outstanding. It said around half of this is now subject to an agreed monthly payment plan. Short-term rent concessions for the quarter have been given on rents totalling less than £0.1m, it added.
In Ireland, 97% of rents due by 1 April 2020 have been collected with less than €0.1m still outstanding.
Harry Hyman, managing director of PHP, said the portfolio of acquisitions present the company with several asset management opportunities to increase rental income and capital values including enlarging the premises, extending the lease terms and obtaining an uplift in rent.
“The current coronavirus pandemic is expected to reinforce the need for modern, integrated primary care facilities to relieve pressure on hospitals and A&E facilities,” he added.
PHP : Primary Health Properties buys portfolio of medical centres for £47.1m