London-listed Primary Health Properties has bought a new primary healthcare centre in Athy, Co Kildare, investing €11.4 million.

The company said its investment vehicle Primary Health Properties ICAV has contracted to provide development funding for the construction the centre, which will have 3,975 sq m of lettable space. About 80 per cent of the space will be contracted to the Health Service Executive (HSE) and Tusla on 30 year leases, with the remainder pre-let to a GP practice, pharmacy, and retail operator.

The centre, which is expected to be completed in early 2020, is PHP's ninth in Ireland, with a gross value of €120 million of committed capital. PHP now has a total of 316 assets, with a gross value of more than £1.5 billion.

"This acquisition will provide a substantial new purpose built primary care centre and reinforces our progress in growing our Irish portfolio, a market where we see significant potential due to the Irish government's commitment to modernise the primary care infrastructure and widen the provision of healthcare services in local communities," said PHP managing director Harry Hyman. "The acquisition of the completed centre is in line with our strategy of investing in purpose built centres offering a range of healthcare services and with the majority of the income secured against government backed tenants with a long unexpired term. We have a strong pipeline of acquisitions in the UK and Ireland and are well positioned to continue growing the portfolio in both jurisdictions."