Healthcare group PPP snapped up by rival for £41.1m
WORCESTER-based Prime Public Partnerships (PPP) is to be acquired by healthcare facility investor Primary Health Properties (PHP) in a £41.1m deal.
PPP has invested in and runs 54 healthcare facilities across the UK with an aggregate value of £233m.
London-based PHP revealed it was still on the search for suitable assets in the West Midlands when it bought the St Johns medical facility in Worcester for £4.5m back in April.
PHP, is set up as a REIT investment vehicle. Its acquisition of PPP is subject to PHP shareholder approval.
PHP said the acquisition is a key part of the strategy to grow the group through investment in high quality primary care facilities in the UK
The completed deal would give it a combined portfolio valuation of £880m, excluding PHP acquisitions and forward commitments since June 30.
PHP said it expected the acquisition to be earnings enhancing in the first full year following acquisition, with the opportunity to increase this further through asset management and debt refinancing opportunities.
Its managing director Harry Hyman said: “The proposed acquisition of the PPP property portfolio represents a significant development for PHP.
“Portfolios of this scale and quality are rarely available and the board are delighted that PHP has been able to secure the agreement. Following completion of the acquisition our strategic position as the market leader in UK primary care assets will be enhanced.”
Richard Laing, chief executive officer of Prime, said: “We are delighted to support the ongoing expansion and success of PHP and expect this to be the start of a valuable partnership between the two leading players in the sector.”
