Why Primary Health Properties Shares Have Jumped on Wednesday Morning

Shares in Primary Health Properties (LON: PHP) climbed 3% on Wednesday morning after the healthcare property investor confirmed it is in advanced discussions to form a joint venture around its £700 million private hospital portfolio.

The UK real estate investment trust issued a statement responding to recent press speculation, confirming that it is engaged in “advanced discussions with an investor regarding the potential contribution of the private hospital portfolio to seed a new joint venture.”

PHP shares rose as much as 3% to a high of 94.85p, up from a previous close of 91.8p, as investors welcomed the prospect of a deal that could significantly accelerate the company’s deleveraging ambitions.

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The move forms part of a broader strategic review PHP has been conducting to “enhance the long-term value” of its private hospital assets, which carry inflation-linked long leases and have been described by management as performing strongly.

The company’s loan-to-value ratio currently stands at 57% — above its target range of 40–50% — making capital recycling through joint venture structures a key priority.

This would not be PHP’s first venture of this kind. The group already has a joint venture with Universities Superannuation Scheme (USS), with £103 million of assets agreed and expected to complete in 2026. Management has previously indicated it could hold a stake of between 20% and 50% in a private hospital joint venture.

PHP cautioned, however, that “discussions remain ongoing” and that there can be “no certainty that any transaction will be agreed, nor as to the terms on which any transaction might be concluded.” A further announcement is expected in due course.