UK's PHP forms joint venture with Singapore's GIC to cut debt
UK's PHP forms joint venture with Singapore's GIC to cut debt Oct 19 (Reuters) - Primary Health Properties PHP.L expects to receive £500 million ($666.55 million) from a joint venture deal with Singapore sovereign wealth fund GIC that would help the British healthcare REIT cut debt, the firm said on Monday.
Here are more details:
The partners will each own a 50% stake in the venture, which will be seeded with 27 private hospitals from PHP's existing portfolio worth about £700 million.
The deal follows June discussions with an unnamed investor over a potential joint venture as PHP explored ways to unlock value from its private hospital portfolio.
The company said the proceeds will be used to repay debt linked to its Assura acquisition.
PHP will retain a 50% stake and earn recurring income as the venture's property and asset manager.
The transaction is expected to reduce the healthcare property investor's net debt to about £2.9 billion from £3.4 billion at June 30.
($1 = 0.7501 pounds)
(Reporting by Atharva Singh in Bengaluru; Editing by Harikrishnan Nair)
((Atharva.Singh@thomsonreuters.com;))
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