UK's PHP forms joint venture with Singapore's GIC to cut debt

By Reuters News

Oct 19 (Reuters) - Primary Health Properties PHP.L expects to receive £500 million ($666.55 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 Monday.

Here are more details:

  • 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.

($1 = 0.7501 pounds)

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