Primary Health Properties to build primary care centre in Ireland

Healthcare facilities investor Primary Health Properties said it would spend €18m to develop and buy a purpose-built care centre in Arklow, Ireland.

Primary Health said on Thursday that Ireland's Health Service Executive and a local GP practice, which will relocate to the centre on practical completion, have signed lease agreements with an initial term of 30 years.

The FTSE 250-listed group stated lettings would be accretive to the overall weighted average unexpired lease term of its portfolio and would also provide approximately 90% of its income from strong government-backed covenants.

PHP added that the acquisition would increase its portfolio to a total of 511 assets, of which 17 are in Ireland, with a gross value of just under £2.5bn and a contracted rent roll of £132m.

Managing director Harry Hyman said: "The property, which is due for practical completion at the end of 2021, will support both the HSE's strategy of healthcare provision in Ireland and PHP's strategy of delivering modern healthcare facilities let on long lease terms to tenants with a secure covenant.

"We have a strong pipeline of opportunities in the UK and Ireland and are well positioned to continue to grow our portfolio and to support the healthcare systems in these markets through the provision of modern, primary care infrastructure"

As of 0840 BST, Primary Health shares had dipped 0.13% to 155p.