London-listed healthcare real estate investment trust Primary Health Properties has confirmed it is in active discussions with an institutional investor over the potential contribution of its private hospital portfolio to seed a new joint venture.

According to a report by IOL, PHP stated that the talks remain ongoing and subject to all necessary approvals, with no certainty at this stage that any transaction will be concluded. The company said all options are being evaluated as it continues to explore strategies to enhance the long-term value of its private hospital portfolio.

PHP's confirmation followed Sky News speculation that the potential investor is a large, credible institutional fund with an interest in healthcare real estate, and that the deal could involve hundreds of millions of pounds in assets. PHP has previously indicated it has been in discussions with what it described as "highly credible investors" regarding potential joint venture arrangements.

The company holds a £6 billion (€7.1 billion) portfolio invested in critical social infrastructure assets across the UK and Ireland, spanning primary care and private hospital facilities. In 2025, PHP combined with Assura to create the UK's largest listed healthcare real estate investment trust, placing the enlarged group in the top quartile of the London Stock Exchange FTSE 250 index and delivering increased share liquidity, broader investor reach, and a lower cost of capital.

PHP's share price rose 4.78% on the Johannesburg Stock Exchange on the day of the confirmation, reaching R20.82, reflecting market appetite for the potential transaction. The company holds a secondary listing on the JSE in addition to its primary London listing, having joined the South African exchange in 2021.

For private healthcare operators and investors, the potential joint venture illustrates the increasing appetite among institutional capital for exposure to healthcare real estate as a defensive, long-duration asset class. The move would allow PHP to recycle capital from its private hospital holdings while retaining strategic involvement through a shared ownership structure, a model that has gained traction across European healthcare infrastructure markets.

PHP's director noted that the company's portfolio and platform, combined with a disciplined focus on rental growth and cost control, supports its 30-year track record of paying an increased progressive dividend.

Discover the full details of Primary Health Properties' joint venture discussions and portfolio strategy at the source.