Primary Health Properties PLC (PHP) specialises in the ownership of freehold or long leasehold interests in modern purpose-built healthcare facilities, the majority of which are leased to general practitioners and other associated healthcare users. The Group's objective is to generate rental income and capital growth through investment in primary health care property in the UK.

The Group confirmed that has issued new shares to raise approximately £16.1million to allow for portfolio expansion and maintain financial flexibility.
 
PHP's portfolio is comprised of over one hundred and fifteen primary healthcare facilities, both completed and committed, the majority of which are GP surgeries, with other properties let to Primary Care Trusts (PCTs), pharmacies and dentists. All properties are currently let, creating an estimated yearly rental income of £28.9million (31st March 2011), compared with £28million estimated at 31st December 2010.

PHP is committed to expansion, having also secured a £50million (interest only) credit facility with Clydesdale bank, and has committed to procuring a property in Newark for £4.3million.

The additional money will ensure that PHP continues to be well positioned to capitalise on the Health and Social Care Bill proposals for England, which are expected to enhance the role of GPs and lead to increased demand for modern primary healthcare facilities in the medium term.

Author: Paul Chapman, Analyst