Britain’s PHP forms joint venture with Singapore’s GIC to cut debt
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The partners will each own a 50% stake in the venture.
PHOTO: REUTERS
- Primary Health Properties will form a 50-50 joint venture with Singapore’s GIC to raise £500 million and cut debt.
- The venture will hold 27 private hospitals from PHP’s portfolio, worth about £700 million, and PHP will stay as property and asset manager.
- The money will repay debt from the Assura deal, reducing net debt to about £2.9 billion from £3.4 billion, Reuters said.
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BENGALURU – Primary Health Properties expects to receive £500 million (S$852 million) from a joint venture deal with Singapore sovereign wealth fund GIC meant to help the British healthcare real estate investment trust reduce debt, the company said on Oct 19.
The partners will each own a 50% stake in the venture, which will be seeded with 27 private hospitals from PHP’s existing portfolio worth about £700 million.
The deal follows June discussions with an unnamed investor over a potential joint venture as PHP explored ways to unlock value from its private hospital portfolio.
The company said the proceeds will be used to repay debt linked to its Assura acquisition.
PHP will retain a 50% stake and earn recurring income as the venture’s property and asset manager.
The transaction is expected to reduce the healthcare property investor’s net debt to about £2.9 billion from £3.4 billion as at June 30. REUTERS