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PHP cautious on impact of Health & Social Care Act

GP landlord Primary Health Properties (PHP) believes the Health & Social Care Act (2012) will have “a positive impact on future development opportunities” – but is not expecting an immediate surge in new projects.

In an interim management statement, the company said the Act “brings to an end a protracted period of uncertainty within the health sector that has impacted on the flow of new medical centre developments and reduced volumes”.

It added that while the passing of the legislation provides a platform to increase the number of approvals for new medical centres across England, directors “do not expect there to be an immediate rush by the new NHS management structures to approve a large number of new projects”.

PHP said that, according to a member of the healthcare ministerial team, in the future the NHS Commissioning Board will be responsible for the reimbursement of GP premises' costs - news it described as "a positive development"..

The firm announced an annualised passing rent roll, including commitments, of £32.5 million at 31 March 2012 (£32.3 million at 31 December 2011).

It also reported the acquisition of a further £4.5 million of investment properties for the period from 1 January 2012 to 16 April 2012. Transactions totalling some £17.5 million are also in solicitors' hands to acquire assets in south Wales, the west Midlands, Norfolk and Somerset.

PHP said that following the recent completion of its refinancing process, it is well placed to continue growing assets under management, and its portfolio through acquisition.