McKay Securities has secured a 25-year prelet to two GPs for a new medical centre at Strawberry Hill House in Newbury, Berkshire.
The REIT has entered into an agreement for lease under which, subject to receipt of planning consent, it will convert and add to the existing building to deliver a 15,200 sq ft medical centre.
The conversion of the 1980s office building to medical use will allow for two local medical practices to relocate and expand into the building.
On completion of the works, the practices will enter into a government-backed 25-year lease at an annual rent of £262,750.
This is one of a number of projects to be funded by the proceeds of the capital raising announced by McKay on 29 January.
Managing director Simon Perkins said: “This is an excellent use for this property which, on completion of the refurbishment works will provide us with a secure long-term income and an uplift in capital value. We have had great support from the two medical practices, and we look forward to delivering a scheme which will provide modern facilities for their patients.”
Primary Health Care Properties acted for McKay Securities.
nick.whitten@estatesgazette.com
