Primary Health Props - Republic of Ireland Acquisition
Primary Health Properties ICAV, an Irish investment vehicle wholly owned by PHP, has acquired The Meath Primary Healthcare Centre, Dublin 8 ("Meath PCC"), a primary care centre located in Dublin for a total cost of €10.9 million.
The Meath PCC provides a range of local integrated care services including; three GP practices, diagnostic services, dentistry, a specialist health clinic, physiotherapy services and a pharmacy.
The property comprises circa 2,770m2 which is fully let. The Health Service Executive ("HSE") and GP practices account for 64% of the total rent roll and these leases benefit from CPI led rent reviews. The combined unexpired lease term is approximately 16 years, but circa 20 years for the leases to the HSE and the GP practices. The HSE is the Irish government's executive agency which provides Ireland's public health services in communities across the country.
This acquisition, which has a completion date of 19 July 2019, is PHP's tenth in Ireland and increases PHP's total portfolio to 317 assets, with a gross value of over £1.5 billion and a contracted rent roll of just under £80 million. The gross value of the Irish portfolio is now approaching €120 million.
Harry Hyman, Managing Director of PHP, commented:
"We are delighted that our portfolio in Ireland continues to grow with the most recent acquisition of an existing fully let PCC in Dublin. The majority of the rental income is secured against a government backed tenant with a long unexpired term. We are committed to the continued growth of our portfolio in Ireland, a market where we see significant potential due to the government's commitment to modernise the primary care infrastructure and widen the provision of healthcare services. We have a strong pipeline of acquisitions in the UK and Ireland and are well positioned to continue growing the portfolio in both jurisdictions."