Primary Health Properties (PHP), a leading UK provider of primary healthcare facilities, has acquired 33 high-quality fully-let assets for more than £100 mln (EUR 122 mln) in a bid to reach a dominant position in its niche segment.

Primary Health Properties (PHP), a leading UK provider of primary healthcare facilities, has acquired 33 high-quality fully-let assets for more than £100 mln (EUR 122 mln) in a bid to reach a dominant position in its niche segment.

In a statement announcing its H1 2010 results, PHP said that the purchases were completed at yields at or above 6%. 'PHP remains very well positioned to take advantage of further opportunities across the UK through the acquisition of suitable investment properties or funding new development,' the company said.

In the half year ended June 30, the company's operating profit rose from £3.2 mln to £4.0 mln. The value of PHP's portfolio increased to £461 mln at end-June 2010, compared to £342 mln at end-2009. PHP is proposing an increased interim dividend of 8.75p for the period.

According to Harry Hyman, managing director of PHP, demand for modern, purpose-built premises is set to increase as a result of the new coalition government's proposals to greatly enhance the role of the General Practitioners in the National Health Service. 'I am delighted to report PHP's financial performance has again been strong in the first half of the year with rental growth continuing to be obtained against a backdrop of full occupancy.'

PHP buys fully- occupied healthcare centres, which are seen as safe real estate investments given that their leases to tenants are backed by the state. In addition to the acquisitions, the firm has recently commenced work on a number of projects including Ritchie Street, Islington and The Old Fire Station, Woolston.