London Stock Exchange welcomes Primary Health Properties to ORB
Tuesday 24th July 2012
London Stock Exchange today welcomes the latest listing of a new bond on its Order book for Retail Bonds (ORB). Primary Health Properties PLC (“PHP”), one of the largest providers of modern primary healthcare facilities in the United Kingdom, has raised £75 million from private investors with its first retail bond issue, which closed one week early due to strong demand.
PHP is the first ever UK Real Estate Investment Trust (REIT) to issue a retail bond, which will pay 5.375 per cent a year, payable semi-annually.
PHP specialises in the ownership of modern purpose-built primary healthcare facilities in the United Kingdom, which are mostly leased to general practitioners, NHS organisations and other associated healthcare users, including on-site pharmacies. The Group's portfolio comprises over one hundred and sixty primary healthcare facilities, both completed and committed, with an average unexpired lease term of 16 years, providing essential social infrastructure for the UK's provision of healthcare services.
Celebrating the launch, Harry Hyman, Managing Director of Primary Health Properties, today opened the market at the London Stock Exchange, commenting:
"Our debut retail bond has been a great success. We are delighted to be the first UK REIT to issue a retail bond. The extremely positive response from investors demonstrates the attractiveness of PHP and its consistent income streams which provide stable returns. We have successfully accessed a new source of funding and diversified our range of debt finance. The success of this offering may lead the Company to consider further bond offerings to retail investors in the future."
Pietro Poletto, Head of Fixed Income Markets at London Stock Exchange Group, said:
“This is a great new listing for our retail bond market, ORB. PHP is a business which saw swift uptake of its bond by investors keen to invest in convincing companies. This is a fantastic example of how our platform isn’t just there to provide funding for big blue chip financials, but can help issuers of any size and sector take advantage of heightened appetite for bonds in the retail community.”
Stuart Bell, Managing Partner of IDCM commented:
“IDCM is delighted to have lead-managed Primary Health Properties’ first retail bond. There has been an extremely high level of investor demand which enabled the offer to close a week early. This has also demonstrated the wider appeal of new and different issuers of retail bonds to private investors.”