Healthcare investor to spend €300m in Ireland by 2021

Primary Health Properties acquired another unit in Ireland for €10.9m

A PHP facility on the Navan Road.

A PHP facility on the Navan Road.

 

Primary Health Properties (PHP), a UK-based investor in primary care centres, expects to reach its €300 million budget for acquisitions here by 2021, its manager director said on Tuesday after it acquired another facility in the Republic.

On Tuesday, PHP announced its acquisition of the Meath Primary Healthcare Centre in Dublin 8. The €10.9 million acquisition includes a centre with three GP practices, diagnostic services, dentistry, a specialist health clinic, physiotherapy services and a pharmacy.

The 2,770sq m facility is fully let and the Health Service Executive (HSE) and GP practices account for 64 per cent of the total rent roll.

PHP’s acquisition will complete in July of this year and increases its total portfolio to 317 assets with a gross value of more than £1.5 billion (€1.75 billion) and a contracted rent roll of just under £80 million.

The London-listed investor agreed a merger with MedicX in January, a transaction which is due to complete later this week, PHP managing director Harry Hyman told The Irish Times.

The merger of the two entities will create a combined group with a portfolio of £2.3 billion, allowing it to expand its portfolio in the Republic to about €300 million, Mr Hyman said.

Portfolio

With its 10 properties, PHP has an Irish portfolio worth more than €120 million while MedicX’s assets are worth €56 million. Mr Hyman noted PHP will likely reach the €300 million limit by the middle of 2021.

Mr Hyman noted that the Meath centre property in Dublin 8 had the majority of its rental 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,” he added.

In the Republic, he said the group was looking at more assets, notably in the greater Dublin region.

PHP is currently scoping out 10 new units for the Republic. Other locations in which the company has assets include Kildare, Meath, Wicklow, Laois, Cork and Tipperary.