Primary Health Properties sets aside £114m for new acquisitions
PRIMARY Health Properties, one of the UK’s largest providers of modern primary healthcare facilities, is on the hunt for fresh acquisitions after completing a successful refinancing of the business.
The firm, which has 17 properties in the West Midlands, said a retail bond issue had raised £75m in unsecured finance at a rate of 5.375% for a seven- year term.
Following the retail bond issue, total facilities available to the group amount to £459m with drawn borrowings currently totalling £329m. Contracted commitments to forward funding and acquisitions is £16m, giving the group head room of £114m to fund further acquisitions.
In an interim management statement for the period from July 1 to November 15, 2012, the firm said: “Having completed the refinance of the group’s core debt facilities and obtained new funds from the unsecured retail bond, the group is now well positioned to add to its portfolio at yields which exceed its marginal cost of funding. This will enable the group to re-establish 100% dividend cover which remains management’s top priority.”
Transactions totalling £106m are in lawyers’ hands – higher than for some time – and the group said it would update shareholders when these deals were completed.
The period has seen the group secure a number of new investment properties, including the £8.5m development of a new modern, purpose built medical centre in Stourbridge.
