Healthcare property group buys practices in region

Primary Health Properties (PHP)has agreed to acquire the entire issued share capital of Apollo Medical Partners (AMP), an investor in primary care and pharmacy properties, with a UK-wide portfolio.

The acquired portfolio includes Dr Youd & Partners at Heckmondwike Medical Centre in West Yorkshire, the Carlton Medical Practice in Bradford, Dr Eisner & Partners in Shipley, West Yorkshire and Ripponden Medical Centre, which is also in West Yorkshire.

AMP owns 14 primary care properties, including 11 completed assets. Three are on site, with planned completion dates between February 2013 and August 2013.

In a statement issued yesterday, PHP said: “The assets have been acquired at a total cost of £64.6m, including transaction costs, reflecting a net initial yield to PHP of 5.9 per cent.”

The portfolio has been independently valued by Lambert Smith Hampton at an aggregate of £62.3m, The Apollo Capital Projects Development team (ACPD), a sister company of AMP, which is led by Johnny Dryburgh, has developed, procured and managed the portfolio.

ACPD will complete the procurement and handover into occupation of the three schemes that are under construction.

PHP has entered into a partnership agreement with ACPD, with an option to fund and acquire future schemes in their ongoing development pipeline.

Following completion, PHP will have a total portfolio of 183 primary care properties with a total value of £643.3m,

Harry Hyman, the managing Director of PHP, said: “This is an important acquisition for PHP which demonstrates our ability to acquire modern, well-let portfolios at cash yields ahead of the current portfolio net initial yield.

“The acquisition adds 14 high quality assets to our existing portfolio, boosts PHP’s rental profits and is in line with management’s aim of returning to full dividend cover at the earliest opportunity.”

Analysts from Numis said they were encouraged by the fact that the deal brings a new strategic relationship for PHP, which should provide access to a pipeline of future deals.

London-based PHP has a board of six independent directors.

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