Primary Health Properties PLC has agreed to place 27 private hospitals in a joint venture with Singapore sovereign wealth fund GIC, a deal it expects will reduce debt following its acquisition of Assura plc.
The British health care property company expects about £500 million in net cash proceeds when the transaction closes, which it anticipates in November 2026. PHP plans to use the money to repay and cancel its remaining Assura acquisition bridge facility and a separate £266 million term loan.
PHP projects net debt of about £2.9 billion after the transaction. It reported £3.4 billion in net debt as of June 30, 2026. The projected figure depends on the deal being completed.
Each partner would own 50% of the venture. The 27 hospitals have a gross asset value of about £700 million, and PHP has agreed to transfer them at a price equal to 95% of their Dec. 31, 2025, book value.
PHP would retain its stake in the hospitals through the venture and act as its property and asset manager. It expects to earn recurring management fees. The projected £500 million in net cash proceeds excludes that retained ownership interest and £47.5 million in deferred consideration.
The venture still needs its secured financing finalized. PHP said lenders have agreed the main terms and documentation is in progress. The company expects the transaction to close in November 2026.
