Primary Health Properties and GIC agree to form $938 million joint venture for 27 UK private hospitals

Primary Health Properties has agreed to place 27 UK private hospitals into a 50-50 joint venture with Singapore sovereign wealth fund GIC, IREI reported on 20 October. The portfolio is valued at about £700 million ($938 million).

The agreement is conditional and the hospitals come from PHP's existing portfolio. They have a weighted average remaining lease term of 22 years and long-term, index-linked leases.

The portfolio transfers at a 5 percent discount to its Dec. 31, 2025, book value. PHP keeps a 50 percent ownership interest and will act as property and asset manager. It describes the arrangement as an additional source of recurring management fee income.

PHP expects about £500 million ($670 million) of net proceeds to repay remaining bridge financing from its 2025 Assura acquisition and a £266 million ($356 million) term loan.

On completion, PHP expects net debt of about £2.9 billion ($3.9 billion) and a loan-to-value ratio below 55 percent.

The venture's remit is private hospital infrastructure in the United Kingdom. The £700 million valuation covers the initial 27 hospitals. PHP said the partnership gives it a vehicle to add private hospital assets alongside GIC and flagged the potential to expand its private hospital investments through the partnership.