Primary Health Properties has agreed to set up a 50:50 joint venture with GIC, Singapore's sovereign wealth fund, seeded with 27 UK private hospitals valued at about £0.7bn, the company said on 19 October.
Why GIC is buying 50% of a private hospital joint venture seeded with 27 Primary Health Properties hospitals
PHP said the venture deleverages its balance sheet after the Assura acquisition, adds a recurring management-fee income stream with potential performance-fee upside, and brings in a long-term capital partner to grow in private hospital infrastructure.
“The establishment of this joint venture with GIC marks an important strategic milestone for PHP.”
Deal terms and financing
The hospitals transfer at a 5% discount to their 31 December 2025 book value and carry a weighted average unexpired lease term of 22 years. PHP keeps a 50% interest and will act as property and asset manager. It expects about £0.5bn of immediate cash, net of its retained equity and £47.5m of deferred consideration, to repay the Assura bridge facility and a £266m term loan, cutting net debt to about £2.9bn.
Regulatory approvals and timing
Completion, expected in November 2026, is conditional on finalising a new secured club debt facility for the venture; PHP said key terms have been agreed with lenders and property and commercial due diligence is complete.
Market context
PHP had said in June that it was in advanced talks with an unnamed institutional investor over a private hospital joint venture. It became the UK's largest listed healthcare REIT after acquiring Assura in 2025.
