Primary Health Properties (PHP) has entered into a 50:50 strategic joint venture with global institutional investor GIC to invest in private hospital infrastructure.
The JV will be seeded with 27 private hospitals from PHP’s existing portfolio valued at approximately £0.7bn. Completion is expected in November 2026 and PHP expects to receive net proceeds of circa £0.5bn, which will be used to repay variable rate debt facilities, including the remaining balance of the bridging facility put in place to acquire Assura in 2025.
PHP will retain a 50% interest in the JV and act as its property and asset manager. The seed portfolio, which was transferred at a discount of 5% to the 31 December 2025 book value, has a gross asset value of approximately £0.7bn, with a weighted average unexpired lease term of 22 years. It benefits from long-term, index-linked leases and strong underlying operating performance.
Mark Davies, CEO of PHP, said: “The establishment of this joint venture with GIC marks an important strategic milestone for PHP. In addition to generating proceeds to reduce our borrowings, the transaction enhances returns on invested equity for our shareholders and brings a highly aligned capital partner to support investment in essential UK hospital infrastructure. Together, we are well positioned to capitalise on the significant structural growth opportunities in the private healthcare market. PHP is delighted to have GIC as a partner and is excited about the opportunity to grow this platform in the future.”
Rothschild and Co is acting as sole financial advisor to PHP on the transaction and as debt advisor to the JV on the financing process.
