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Nabarro acts on £60 million placing and open offer for Primary Health Properties PLC

21 September 2009

Nabarro LLP is acting for Primary Health Properties PLC (PHP) on its £60 million fundraising from new and existing shareholders at an issue price of 230 pence per new ordinary share.
The new shares have been conditionally placed with institutional and other investors by Numis Securities Limited (Numis) and the new issue is being fully underwritten by Numis.

PHP is a UK REIT whose principal activity is the generation of rental income and capital growth through investments in primary health care property in the United Kingdom. The properties are leased principally to GPs, Primary Care Trusts, health authorities and other associated health care users.

Over the last 10 years, PHP has outperformed the FTSE All Share Real Estate Index. The net proceeds of the fundraising will initially be used to repay existing debt to enable PHP to take advantage of opportunities to invest in additional investment properties to expand its property portfolio. PHP has a development pipeline of 21 identified properties with a total un-audited value of approximately £90 million.

Nabarro corporate partner Glyn Taylor led the Nabarro team, which also included corporate partner Alasdair Steele and associates James Archibald, Kate Grayling and Samantha Wright. Numis was advised by Norton Rose LLP.

Commenting on the transaction, corporate partner Glyn Taylor said:

"As commentators are starting to discuss the recovery in London's capital markets, it is encouraging to see investors being prepared to invest in listed companies to fund growth opportunities, as well as supporting existing investments. At Nabarro, we have recognised expertise in both the equity capital markets arena and healthcare sector and it was pleasing to be able to use this to support this successful fundraising."