Primary Health Properties raises £100m in new equity
UK-listed Primary Health Properties has raised £100m in additional equity to bankroll the developments of new health centres.
Primary Health Properties (PHP) is already a major investor in healthcare centres in the Republic of Ireland.
PHP merged in March with MedicX, creating a group with 484 properties valued at £2.3bn.
The firm told investors yesterday, as it launched its accelerated bookbuild for its fresh funding, that it's seen an increased number of opportunities for funding new developments Ireland and the UK.
"The directors believe these transactions to be very attractive for PHP as they typically involve the development of larger medical centres that house bigger GP practices, providing a more integrated healthcare offering in line with PHP's stated strategy of focusing on hub primary care centres," it told investors.
The new equity will also be used to fund the £20m development of four sites in the UK.
PHP said the funding and acquisition of new medical centres means it must commit to making capital available during the course of the developments, typically for a period of between 12 and 18 months.
"If funded by equity, these developments as they complete will increase the value of unfettered assets in the PHP portfolio and strengthen its balance sheet," it added.
PHP said it planned to raise £75m with the right to increase the placing to £100m depending on investor demand. Yesterday afternoon it confirmed that it had raised £100m. Managing director Harry Hyman said: "The company has a strong pipeline of opportunities that it is pursuing ...together with the improved terms we recently secured in the debt markets.."