Primary Health Properties is acquiring its management platform and developer Nexus Tradeco from property tycoon, PHP managing director Harry Hyman for £33.1m.
The offer comprises 50% cash and 50% new shares to be issued.
PHP anticipates the move will deliver annual savings of £4m as it seeks to scale. It expects the new structure will broaden investor interest and improve shareholder returns.
The purchase will also provide a pipeline of opportunities, including schemes under Nexus Developments. PHP intends to bring forward future primary care developments using its balance sheet capital.
Following the acquisition, PHP managing director Harry Hyman will become chief executive of the business.
PHP chairman Steven Owen said: “Exacerbated by the disruption seen this year, demand for new and improved primary care centres to alleviate pressure on hospitals and A&E departments is at an all-time high.
“We believe that acquiring Nexus will help position PHP to play a key role in these opportunities, underpinning the next stage of the company’s growth and benefitting the long-term future of the business.”
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