Primary Health Properties (PHP), a London-listed owner of primary care properties in the UK and the Republic, is on track to see the value of its Irish portfolio breach the €450 million level as it continues to expand in the market.
The real estate investment trust (Reit) reported on Tuesday that the value of its Irish portfolio rose almost 27 per cent last year to €391 million, driven as it inherited six care centres in the State through its acquisition of UK rival Assura, as well as the purchase of the Laya Healthcare facility in Cork for €22 million.
PHP owned 28 properties in the State at the end of 2025. Since then, it has completed the development of a primary care centre in Ballybay, Co Monaghan, and is developing three facilities: in Birr, Co Offaly; Castlebar, Co Mayo; and Youghal, Co Cork. The properties in development were included in the overall valuation figure.
However, PHP said that its advanced pipeline also includes two projects with an estimated total cost of €60 million. Axis Technical Services, the Irish property management group acquired by PHP three years ago, is charged with identifying opportunities in the market.
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If the two projects are developed, it should mean the value of the Irish portfolio easily breaches the €450 million level.
“PHP continues to see significant growth opportunities in Ireland, driven by sustained Government investment in healthcare infrastructure and a strategic shift towards community-based healthcare,” the company said in its annual results statement.
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PHP entered the Republic in 2016 with the purchase of the Tipperary Primary Care centre, leased out to the Health Service Executive, a GP practice, and a pharmacy. Since then, it has focused on acquiring or building health centres and renting them out predominantly to the HSE under agreements that provide for five-year rent reviews in line with the consumer price index.
The main goal of primary care centres is to reduce hospital visits by providing as much primary, preventive, and chronic care in the community as possible, often in a multidisciplinary, integrated setting.
The value of the wider PHP group’s property portfolio, including its share of joint ventures, now stands at £6 billion (€6.95 billion) across 1,142 assets, up from 516 assets a year earlier, largely thanks to the Assura acquisition, which was completed in September.
Leases with some 25 Irish tenants came up for review last year, resulting in a 20.9 per cent uplift from the previous passing rent, equating to an annualised rise of 4.1 per cent. The combined uplift from the 25 was €1 million, bringing their combined new contracted annual rent to €6 million.
The Republic accounted for £21 million (€24.3 million) – or about 6 per cent – of the group’s £342 million of contracted annual rent at the end of last year.
The UK group’s net asset value per share, measured on a basis set out by the European Public Real Estate Association, fell 3.9 per cent last year to 99p. This reflected the effects of the share exchange ratio and transaction costs incurred in the £1.6 billion stock-and-cash Assura deal.
Net debt rose £3.4 billion from £1.3 billion a year earlier, driven by a bridging loan to finance the Assura transaction.
Looking ahead, PHP said it is encouraged by the improving rental growth outlook underpinned by its primary care assets, along with the solid trading performance from the recently acquired private hospital portfolio.
“[The year] 2025 was a transformational [one] for PHP, obtaining overwhelming shareholder and wider stakeholder support for the combination with Assura plc to create a £6 billion healthcare Reit invested in critical social infrastructure assets across the UK and Ireland, which will deliver financial and strategic benefits to our stakeholders,” said chief executive Mark Davies.
