Primary Health Properties has raised £3.7m through a share placing to be used to bolster working capital.

The listed surgery owner placed 1,679,354 shares at a price of 220p a share.

The placing was underwritten by KBC Peel Hunt, and was taken up by institutional and other investors including joint managers of the company, Nexus Group Holdings and J O Hambro Capital Management.

It said that the proceeds of the placing would be used for ‘general working capital’.

Harry Hyman, managing director at Primary Health Properties, said:

‘The board is pleased to have secured additional capital from investors. Investors continue to recognise the long term growth potential of Primary Health Properties and its commitment to deliver attractive returns for shareholders.

‘Primary Health Properties operates in one of the most resilient commercial property sectors where it benefits from long lease lengths, strong and growing tenant demand, nil voids and government-backed covenant strength.

‘We have ambitions to substantially grow the business in the future and believe there are buying opportunities in today's market at historically low valuations. The board looks forward to the future with confidence.'