Primary Health Properties funds suburban Dublin healthcare centre

Healthcare facilities investor Primary Health Properties has contracted to fund and acquire a significant purpose-built primary care centre in the Republic of Ireland.

The FTSE 250 company said its wholly-owned Irish investment vehicle, Primary Health Properties ICAV, contracted to provide development funding for the construction of a new primary care centre in Bray, County Wicklow, for a total consideration of €22.3m.

It said the centre would comprise of around 4,800 square metres of lettable space, with approximately 70% of the rent roll contracted to the Health Service Executive (HSE) on a 25-year lease.

The HSE is the Irish government's executive agency, which provides public and health services in communities across the country, PHP explained.

It said the remainder of the premises would be let to a GP practice, pharmacy, coffee shop and car park operator.

Construction work was expected to be completed by autumn 2019.

This acquisition 0 PHP's fifth in the Republic of Ireland - increased the company’s portfolio to a total of 310 assets, with a gross value of more than £1.395bn, and a contracted rent roll of £74.7m.

“This acquisition will provide a substantial new purpose built primary care centre in suburban Dublin, and reinforces our progress in growing our Irish portfolio, a market where we see significant potential due to the Irish government's commitment to modernise the primary care infrastructure and widen the provision of healthcare services in local communities,” said managing director Harry Hyman.

“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.

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