One of the largest listed owners of GP surgeries in the UK is raising £100m

Primary Health Properties (PHP), a listed real estate investment trust which is one of the largest owners of UK GP surgeries, is raising £100m from investors to scoop up more property.

PHP, which currently has a portfolio of 307 healthcare centres worth £1.4bn, is issuing up to 92.6m new shares at 108p apiece – a 5.3 per cent discount.

The cash raised, which could extend to £125m if demand is strong, will be used to pay down debt and fund new acquisitions and developments.

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"We believe there is a good understanding from governments in both the UK and the Republic of Ireland that it is important to deliver an increased number of health services from the local community, and that investment in primary care premises can deliver value for money and better patient outcomes," said PHP's managing director Harry Hyman.

The business said it currently has a pipeline of acquisitions and developments worth £81.8m in the UK and €79m (£69m) in Ireland.

It believes the ageing population and an increase in chronic long term illness will drive the need for purpose-built GP centres.

Analysts at Jefferies reiterated a "buy" recommendation for the trust, saying that if all PHP's opportunities were to complete then they would add £8.2m to the annual rent roll.

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