Primary Health Properties Buys Health Investments For GBP11.7M

23rd Jun 2010 07:58

LONDON (Dow Jones)--Healthcare property investor Primary Health Properties PLC (PHP.LN) Wednesday said it has agreed to acquire primary care and pharmacy property company Health Investments Ltd. for around GBP11.7 million, in a move that will increase its total portfolio size by more than 10%. Health Investments owns 14 primary care properties worth GBP39 million with a current annual rent roll of GBP2.4 million--reflecting a net initial yield of 6.1%. The entire property portfolio is let to general practitioners, primary care trusts, National Health Service bodies and pharmacy operators with 91% of the rental income coming from the NHS. Most of the properties are in the southeast of England. PHP said it will pay around GBP2.9 million of the total payment in 1,005,153 new shares of 50 pence each at 290 pence a share, with the rest in cash. The company will also assume Health Investments' debt of around GBP28.1 million. -By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; [email protected] (END) Dow Jones Newswires June 23, 2010 02:58 ET (06:58 GMT)