BENGALURU – Primary Health Properties expects to receive £500 million (S$852 million) from a joint venture deal with Singapore sovereign wealth fund GIC that would help the British healthcare REIT cut debt, the firm 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 at June 30. REUTERS
