Harry Hyman’s Primary Health Properties has raised £75m through its debut retail bond.
The REIT, which has a £514m portfolio of predominantly GP surgeries, closed the offer period a week ahead of the official two-week deadline after strong demand for the 5.375% bond, which was launched on 3 July 2012.
The bonds will pay a fixed rate of interest of 5.4% in January and July, with the last payment due on 23 July 2019 and will be listed on the London Stock Exchange.
PHP managing director Hyman said: “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.”
He added: “We are delighted to be the first UK REIT to issue a retail bond.”
Independent Debt Capital Markets acted as the lead manager of the transaction. The authorised distributors are Barclays Stockbrokers, Killik & Co, Mirabaud Securities, Peel Hunt, Redmayne-Bentley, Selftrade and Winterflood Securities.
bridget.oconnell@estatesgazette.com
