PHP buys Health Investments

PHP said it would pay 11.7m in cash and shares for Health Investments and would assume its debt of 28.1m after a 900,000 mark-to-market adjustment.

PHP would pay 8.8m, the 2.9m balance being made up by the issue of just over one million ordinary shares at a value of 290 pence each. The shares would be subject to a six-month lock-in period, it said in a statement.

Health Investments owns 14 primary care properties valued at 39m, mostly located in southeast England. Its rent roll, of about 2.4m a year, equates to a net initial yield of 6.1 per cent.

The portfolio is 100 per cent let to general practitioners, primary care trusts, NHS bodies and pharmacy operators with the weighted average lease length being in excess of 19 years.

PHP managing director Harry Hyman said the deal increased his company's portfolio by more than 10 per cent.