UK-based Primary Health Properties will provide more than €22 million in development funding for a new primary care centre in Bray, Co Wicklow.
The 52,000sq ft (4,830sq m) facility is expected to be finished by the autumn of next year, with its owner contracting almost three quarters of the rent roll to the HSE on a 25-year lease.
The remainder of the space will be let to a GP practice, pharmacy, coffee shop and car park operator.
Harry Hyman, managing director of PHP, said the acquisition would provide a substantial new purpose-built primary care centre in the area and reinforce the company's progress in growing its Irish portfolio.
He said the group saw Ireland as "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".
Investing
“This acquisition 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 a Government-backed tenant with a long unexpired term,” he said. “We have a strong pipeline of acquisitions in the UK and Ireland and are well positioned to continue growing the portfolio in both jurisdictions.”
This will be PHP’s fifth acquisition in Ireland. Its total portfolio will stand at 310 properties with a book value of almost £1.4 billion (€1.58 billion).
“PHP’s Irish roll-out continues at pace and we would expect total assets in this market to exceed €100 million by year end as PHP closes in on its €150 million target portfolio,” Goodbody analysts said in a note. “The Irish market is providing PHP with strong total returns due to the more competitive yield pricing and relative infancy of the market sector.”
