Primary Health Properties (PHP) has created a 50:50 joint venture with Singapore sovereign wealth fund GIC, seeding the new private hospital platform with 27 assets valued at £700m (€832m).

UK and Ireland healthcare infrastructure investor PHP said will receive net proceeds of approximately £500m from the transaction, which will be used to pay down variable rate debt, including the bridging facility used to fund its 2025 acquisition of Assura.

PHP will retain a 50% stake in the vehicle and act as property and asset manager.

Mark Davies, CEO of PHP, said: “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.”

Following the transaction, PHP’s net debt will fall to approximately £2.9bn.

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Raz joined the IPE editorial team in 2017 as news editor of IPE Real Assets. He has over 15 years of experience as a financial journalist, having worked for Dow Jones Newswires and The Wall Street Journal where he worked as an equities reporter covering corporate news. He later covered consumer finance and moved on to become a leisure reporter and helped manage the London corporate news and small-cap desk.View full Profile

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