Primary Health Properties (PHP) and Universities Superannuation Scheme (USS) have increased the target size of their existing healthcare joint venture from £250m to £400m.
The investment has the potential to grow to £800m over time and the JV has exchanged contracts on the transfer of circa £67m of assets into the vehicle, with a further identified pipeline of assets expected to follow.
Following the transfer of the nine primary care assets, the joint venture will have assets of more than £250m.
The 20:80 JV will support investment into essential NHS community healthcare buildings and focuses exclusively on assets let directly to NHS or GP tenants with rents linked to inflation or with fixed uplifts.
Mark Davies, CEO of PHP, said: “We are delighted to be extending our successful joint venture with USS, which will enable significant further investment into critical healthcare infrastructure in the UK. With a portfolio approaching £300m, the JV will focus on funding new neighbourhood health centres and other healthcare assets let to the NHS that help deliver the NHS 10-year plan.
“Future growth in the JV will come from further transfers of existing assets and new investment opportunities, including risk-controlled developments. We value the partnership that we have with USS, who are expressing their confidence in primary care by committing additional equity to the joint venture.”
Alex Turner, head of property at USS Investment Management, added: “We are happy to announce the expansion of our established joint venture with PHP. As the UK’s demographics evolve, we continue to believe in the robustness of the healthcare sector, and we’re delighted to invest further into primary care.”
