LONDON (ShareCast) - (Sharecast News) - Healthcare facilities investor Primary Health Properties has contracted with a developer to fund the development and acquisition of a purpose-built primary care centre in Mountain Ash, Rhondda Cynon Taf, Wales, it announced on Monday.
The FTSE 250 company said a wholly-owned subsidiary had contracted to provide development funding for the construction of the property, for a total cost of £4.92m, which would be wholly-owned by Primary Health Properties upon its completion.

It said the property would be let to Cwm Taf Morgannwg University Local Health Board for an initial term of 25 years.

The centre will accommodate two local GP practices, having a combined patient list of 11,500 patients, and provide a range of local health board services, including district nurses, health visitors, public health and other community services.

It said the letting would be accretive to the overall weighted average unexpired lease term of the company's portfolio, and provide for a strong government backed covenant.

The building, which would comprise an area of 1,253square metres, was set to be constructed to a high specification, with the developer contracted to achieve a BREEAM 'Excellent' rating.

Primary Health Properties said the acquisition would increase its portfolio to a total of 485 assets with a gross value of just under £2.4bn, and a contracted rent roll of just under £127m.

"We are delighted to announce this transaction, one of a number of development projects the Group is pursuing at present and which can be funded with the proceeds of our recent successful £100m placing," said managing director Harry Hyman.

"The transaction improves the quality of our portfolio by delivering a new facility with a long unexpired lease term, built to the highest environmental standards.

"We have a strong pipeline of opportunities in the UK and Ireland and are well positioned to continue to grow our portfolio and to support the healthcare systems in these markets through the provision of modern, primary care infrastructure."

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