Primary Health Properties borrows €70m and targets Irish expansion

Primary Health Properties has turned to the secured debt market as it seeks to expand in Ireland. A wholly owned subsidiary of the healthcare investor has issued new senior secured notes for a total of €70m (£62m). The loan is at a fixed rate of 1.51% with a maturity of 12 years. The notes represent PHP’s second euro-denominated transaction in the private placement market. The proceeds of the issue will be partially applied to repay and cancel a €32.6m facility with Bank of Ireland, of which €26.2m was drawn at a 3% margin, and acquired as part of the merger with MedicX in March this year. The firm said the funds would also be used to finance developments currently on site in Ireland as well as fund further acquisitions in both the UK and Ireland. Richard Howell, finance director at PHP, said: “We will use the funds to progress our disciplined strategy of growing PHP’s portfolio, particularly in Ireland, through the acquisition of well-priced, strategic assets that will provide strong income returns and the potential for asset growth whilst maintaining a prudent level of gearing.” To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette