PHP unveils retail bond paying 5.4%

6 July 2012

Primary Health Properties has launched a seven-year retail bond paying interest of 5.375% twice a year.

The company is one of the largest providers of modern primary healthcare facilities. It owns more than 160 properties, which it leases to GPs and NHS organisations, which in turn deliver a revenue stream to PHP.

The company is the first real estate investment trust (REIT) in the UK to issue a retail bond.

The offer period for the bond is from today until Monday 16 July. The fixed-rate bond will pay interest in January and July with the first payment due on 31 January 2013 and the last due on 23 July 2019.

The minimum investment is £2,000, and multiples of £100 can be bought thereafter.

The bond is expected to list on the London Stock Exchange's Order Book for Retail Bonds, and investors will be able to buy and sell it on that market during the life of the bond.

The authorised distributors for the bond include Barclays Stockbrokers, Killik & Co and Redmayne-Bentley.


Harry Hyman, managing director of Primary Health Properties, comments: "PHP is seeking access to a wide variety of sources of capital to expand its portfolio whilst diversifying its funding sources. We believe that a retail bond offers a good opportunity to achieve this and enables fixed income investors, a new class of investor to the company, to benefit from PHP's consistent income streams which provide stable returns."

The company floated on the Alternative Investment Market in 1996 and achieved a main listing on the LSE in 1998. In 2007 it converted to a REIT and became the UK's first dedicated healthcare REIT.

This article was written for our sister website Money Observer

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