Wrap Text
New strategic joint venture with GIC
Primary Health Properties PLC
(Incorporated in the United Kingdom)
Company Number: 3033634
LSE Share Code: PHP
JSE Share Code: PHP
ISIN Code: GB00BYRJ5J14
LEI: 213800Y5CJHXOATK7X11
(“PHP” or the “Company”)
19 October 2026
New strategic joint venture with GIC
Primary Health Properties PLC, a leading investor in critical healthcare infrastructure in the UK and Ireland,
is pleased to announce it has entered into a conditional agreement to establish a 50:50 strategic joint
venture (the “JV”) with GIC, a leading global institutional investor, to invest in private hospital infrastructure.
The JV will be seeded with 27 private hospitals from PHP’s existing portfolio (the “Seed Portfolio”), valued
at approximately £0.7 billion, providing a strong foundation to benefit from the long-term structural growth
in the sector.
Completion is expected in November 2026 and PHP expects to receive net proceeds of approximately £0.5
billion, which will be used to repay variable rate debt facilities, including the remaining balance of the
bridging facility put in place to acquire Assura plc in 2025.
Mark Davies, CEO of PHP, commented:
“The establishment of this joint venture with GIC marks an important strategic milestone for PHP. In addition
to generating proceeds to reduce our borrowings, the transaction enhances returns on invested equity for
our shareholders and brings a highly aligned capital partner to support investment in essential UK hospital
infrastructure. Together, we are well positioned to capitalise on the significant structural growth
opportunities in the private healthcare market.
“PHP is delighted to have GIC as a partner and is excited about the opportunity to grow this platform in the
future.”
Overview of the transaction
The JV’s initial portfolio comprises the Seed Portfolio of 27 private hospitals from PHP’s existing portfolio,
transferred at a discount of 5% to the 31 December 2025 book value. PHP will retain a 50% interest in the
JV and act as its property and asset manager.
The Seed Portfolio has a gross asset value of approximately £0.7 billion, with a weighted average
unexpired lease term of 22 years. It benefits from long-term, index-linked leases and strong underlying
operating performance.
PHP expects to receive immediate cash proceeds of approximately £0.5 billion from the transaction, net of
retained equity interest and deferred consideration of £47.5 million.
The Company believes the principal benefits of the JV for shareholders are:
• Deleveraging: net proceeds will be used to reduce PHP’s debt following the acquisition of Assura
• Earnings diversification: PHP retains a significant interest in the hospital portfolio and gains a new,
recurring management fee income stream, with potential upside from a performance fee
• Strategic partnership: combines PHP’s specialist healthcare real estate expertise with a leading
global institutional investor, with the flexibility to grow over time
Completion of the JV is conditional on the finalisation of a new secured club debt facility where all key
terms have been agreed with lenders and documentation is ongoing. All property and commercial due
diligence has been completed.
Use of net proceeds and financial policies
Proceeds realised from the transaction will be used to repay and cancel in full the acquisition bridging
facility and the £266 million term loan.
Following the transaction, PHP’s net debt will fall to approximately £2.9 billion with a weighted average
interest rate of 3.6%.
On a proforma basis, PHP’s net debt to EBITDA will reduce below 10 times, LTV to below 55% and the
proportion of government-backed income will return above 80%. PHP targets a strong investment grade
credit rating of BBB+ or above, supported by our portfolio metrics and disciplined financial policies. The
strength of the PHP platform is endorsed by the quality of its JV partnerships.
Rothschild and Co are acting as sole financial advisor to PHP on the transaction and as debt advisor to
the JV on the financing process.
– ENDS –
For further information contact:
Mark Davies Richard Howell
CEO CFO
Primary Health Properties PLC Primary Health Properties PLC
David Purcell Sodali & Co
Investor Relations Financial PR
Primary Health Properties PLC Elly Williamson/Madeleine Gordon-Foxwell
T: +44 (0) 7921 190 136 T: +44 (0) 207 250 1446
E: david.purcell@phpgroup.co.uk E: PHP@client.sodali.com
This announcement contains inside information. The person responsible for arranging the release of this
announcement on behalf of PHP is Phil Higgins, Company Secretary.
Notes to editors
PHP is a leading investor in modern healthcare infrastructure, with a £6 billion portfolio of critical social
assets across the UK and Ireland. The portfolio benefits from highly resilient operating metrics in a sector
with strong demographic fundamentals, supported by a positive political backdrop and the need for greater
investment in healthcare infrastructure to deliver services in local communities.
In 2025, PHP combined with Assura to create the UK’s largest listed healthcare REIT, placing the enlarged
Group in the top quartile of the FTSE 250 index, with significantly increased share liquidity, broader investor
reach and a lower cost of capital. PHP’s high-quality portfolio, strong platform, robust balance sheet and
disciplined focus on rental growth and cost control underpin its 30-year track record of dividend growth.
Forward-Looking Statements: This announcement contains certain forward-looking statements with
respect to PHP's expectations and plans and future developments and performance. All statements other
than historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements
are statements of future expectations and all forward-looking statements are subject to assumptions, risk
and uncertainty. Many of these assumptions, risks and uncertainties relate to factors that are beyond PHP's
ability to control or estimate precisely and which could cause actual results or developments to differ
materially from those expressed or implied by these forward-looking statements. Any forward-looking
statements made by or on behalf of PHP are based upon the knowledge and information available to
Directors on the date of this announcement. Accordingly, no assurance can be given that any particular
expectation will be met and you are cautioned not to place undue reliance on the forward-looking
statements. Additionally, forward-looking statements regarding past trends or activities should not be taken
as a representation that such trends or activities will continue in the future. The information contained in
this announcement is provided as at the date of this announcement and is subject to change without notice.
Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and
the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), PHP does not
undertake to update forward-looking statements, including to reflect any new information or changes in
events, conditions or circumstances on which any such statement is based. Past share performance cannot
be relied on as a guide to future performance. The information in this announcement does not constitute
an offer to sell or an invitation to buy securities in Primary Health Properties PLC or an invitation or
inducement to engage in or enter into any contract or commitment or other investment activities. Neither
the content of PHPs website nor any other website accessible by hyperlinks from PHP's website are
incorporated in, or form part of, this announcement.
The Company has a primary listing on the London Stock Exchange and a secondary listing on the JSE
Limited.
United Kingdom
Sponsor: PSG Capital
Date: 19/10/2026 08:00:00
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