PHP forms £700m JV with Singapore wealth fund
Geared towards improving private hospital infrastructure, the 50:50 strategic joint venture has been seeded with 27 hospitals, with Spire Cheshire Hospital in Warrington understood to be among them.
The formation of the £700m JV between healthcare developer PHP and Singapore’s sovereign wealth fund, GIC, is expected to complete in November.
Money received from the £500m-expected proceeds of the JV will be used to repay the debt facilities PHP agreed to finance its acquisition of rival Assura last year for £1.8bn. Those debt facilities were signed with Citibank, RBS, and Lloyds Bank.
The JV move will see PHP’s net debt fall to approximately £2.9bn.
PHP chief executive Mark Davies described the JV as “an important strategic milestone” for the company.
“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,” he said.
“Together, we are well positioned to capitalise on the significant structural growth opportunities in the private healthcare market.”
As part of its role in the JV, PHP will act as property and asset manager for the portfolio, which boasts a weighed average unexpired lease term of 22 years.
PHP’s current portfolio is valued at £6bn and includes healthcare infrastructure across the UK and Ireland.
