Primary Health Properties forward funds £2.8m facility in Wales

Healthcare facility investor Primary Health Properties has contracted with a developer to fund the development and acquisition of a purpose-built primary care centre in Llanbradach, near Caerphilly in Wales, for a total cost of £2.8m, it announced on Wednesday.

The FTSE 250 firm said the property would be let to the Aber and Village Medical Practices, for an initial term of 25 years from practical completion.

It said the letting would be accretive to the overall weighted average unexpired lease term of its portfolio, and provide for a “strong” government-backed covenant.

The building would comprise an area of 667 square metres.

Primary Health Properties said the acquisition would increase its portfolio to a total of 489 assets with a gross value of just over £2.4bn, and a contracted rent roll of just under £128m.

“We are delighted to announce this transaction, one of a number of development projects the group is pursuing at present funded with the proceeds of our successful £100m placing in September 2019,” said managing director Harry Hyman.

“The transaction improves the quality of our portfolio by delivering a new facility with a long unexpired lease term.

“We continue to have a strong pipeline of opportunities in the UK and Ireland and are well positioned to continue to grow our portfolio.”

At 0829 GMT, shares in Primary Health Properties were down 0.25% at 158.8p.