Banks Long & Co – Premier Inn St David’s National Park

Banks Long & Co have published an article to their website detailing their role in St Davids Premier Inn development.

Please view the article Here.

See more about the St Davids Premier Inn in our portfolio.

Banks Long & Co – Farnham Medical Centre Acquisition

Banks Long & Co have published an article to their website detailing their role in Oakdeane’s acquisition of Farnham Medical Centre

Please view the article Here.

See more about Farnham Medical Centre in our portfolio.

Banks Long & Co – Oakdeane Article

Banks Long & Co have published an article to their website detailing their ongoing working relationship with Oakdeane Medical Investements

Please view the article Here.

Honeysuckle Way Medical Centre, Bedford

Many thanks to Rob Hearle for mentioning us in his recent Linkedin post regarding the sale and lease back of Honeysuckle Way Medical Centre in Bedford.

View the post on Linkedin.

Jim Latta’s Listening Exercise at the AGM/Conference

Following Jim Latta’s Listening Exercise at the AGM and Conference last November, the Forum has consolidated all of the answered questions and submitted them to Jim at the Department of Health for further comment/answers. 

Whilst a response has not yet been received, following Andrew Lansley’s announcement, we now know  that the PCT Estate may not pass to Community Foundation Trusts as many believed with the latest rumours indicating that the Estate will be passed over to newly formed NHS PropCo’s.  No substance or detail has yet been received, but the Forum is chasing Jim Latta to get further information.

Article from PCPF.

Rents Continue to Increase

Aitchison Raffety, GVA, Lambert Smith Hampton and Stiles Harold Williams have now been joined by Dacres Commercial in the collection and analysis of rent reviews through the Primary Care Premises Forum. The first appraisal of rental increases, released on this website in the spring of 2011, analysed completed three year rent reviews in 2009 and 2010. Over the last six months, the database has expanded with 86 transactions being analysed for 2009 and 89 for 2010. In addition, we have looked at 52 transactions in 2008 to help plot the direction and change in levels.

The Spring analysis showed an increase in the three years up to 2009 of 10.82%. The additional data now reduces this to 10.3% which shows an average of 3.34% per annum. This is to be expected as a lot of the additional data will be those late reviews which have been hardest to agree and inevitably show the lower figures.

The Spring analysis in the three years up to 2010 showed 10.4% but, like the above, the additional data has now reduced this to 9.23% or an average of 3.08% per annum.

Article taken from PCPF.

Transfer of PCTs’ leasehold interests

Hempsons Real Estate News Brief for January 2012 discusses the problems that could be encountered on the transfer of PCTs’ leasehold interests in property.

Article from PCPF.

48 percent increase in rent roll

Assura, the primary healthcare property company announced a 48% increase in its annualised rent roll in an interim management statement released this morning.

In the last quarter of 2011 it increased its rent roll by 4.2% to £34.4m. At the end of 2010 the rent roll stood at £23.2m. 84% of the company’s rent roll is received from or reimbursed by the NHS. Its portfolio has a weighted average unexpired lease length of 16.3 years. It has also completed eight new developments since 1 April 2011 with a value of £38.7 m, with a revenue of £2.4m. It has five developments currently under construction with an estimated value at completion of £17.8 m.

The company’s board intends to resume dividend payments and declare a final dividend at the year- end.

The company’s strong statement comes at a time when the healthcare sector continues to outperform the rest of the property market.

Simon Laffin, chairman of Assura, said:
“The transformation of Assura to a well funded, pure play primary healthcare property company is now complete. We are focused on delivering both a secure and rising income stream and growth in property value. The continued strong property performance of the group reflects the sound fundamentals of this business as well as the attractiveness of the primary healthcare market underpinned by its stable, long-term, government-backed income.”

Source: Property Week

PHP grows profit and secures debt

GP landlord Primary Health Properties (PHP) saw profit increase by around 10% last year, as the company also secured debt facilities of £300 million.

In results for the year ended 31 December 2011, PHP reported profit before revaluation result and change in fair value of derivatives of £10 million, up from £9.1 million the previous year.

The firm announced debt facilities totalling £125 million that were secured at the end of 2011, while credit approved terms were also agreed with Royal Bank of Scotland and Santander to refinance a £175 million club facility for a new four-year term.

Rental and related income increased by £3.8 million to £30.7 million for the year. In addition, payment of 18 pence of dividends during the year was confirmed (2010: 17.5 pence).

Total portfolio value increased by 7% to £539.7 million at an initial yield of 5.74%.

Harry Hyman, managing director of PHP, said: “I am delighted to announce a 15th successive year of dividend growth, underpinned by the strength of the group’s income as well as an increase on revaluation of the group’s property assets. 

“Market drivers remain very positive for PHP; the government has reaffirmed its commitment to the NHS, ring fenced its budget and provided for real terms increases in expenditure.”

Source: www.healthinvestor.co.uk

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.