New strategic joint venture with GIC
Summary by AI BETAClose X
19 October 2026
Primary Health Properties PLC
(“PHP”, the “Group” or the “Company”)
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:
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Mark Davies CEO Primary Health Properties PLC |
Richard Howell CFO Primary Health Properties PLC |
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David Purcell Investor Relations Primary Health Properties PLC T: +44 (0) 7921 190 136 E: david.purcell@phpgroup.co.uk
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Sodali & Co Financial PR Elly Williamson/Madeleine Gordon-Foxwell T: +44 (0) 207 250 1446 |
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.
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