NewRiver Reit (NRR ) founder Mark Davies has been appointed chief executive of FTSE 250-listed Primary Health Properties (PHP ) following the resignation of Harry Hyman at the annual general meeting (AGM).

Davies will take over the £1.2bn investor in medical centres and doctors’ surgeries at the next AGM in April 2024, succeeding Hyman, who founded the self-managed real estate investment trust (Reit) in 1996. Hyman announced his intention to step down as chief executive at the AGM this year, stating that he will pass on the baton at next year’s meeting.

Davies has experience in FTSE 250 companies, have co-founded NewRiver Reit in 2009 and taking it from initial public offering to the mid-cap index in just seven years. He was chief financial office at NewRiver for more than 12 years and chief executive and executive chair of NewRiver-owned pub group Hawthorn Leisure until its sale in 2021 to Admiral Taverns for £222.3m.

He is currently a senior independent director at London-listed Reit Palace Capital (PCA), which invests in real estate outside of London.

Davies (pictured) will work with Hyman for three months prior to the AGM to ensure a smooth handover of the role.

Hyman said Davies had ‘proven leadership skills’ that will ‘undoubtedly help steer PHP to even greater success’.

Davies said: ‘there is a significant long-term strategic opportunity to own, develop, and modernise healthcare assets and PHP has a high-quality portfolio which is well positioned to continue creating sustainable value from community health assets with a social purpose.’

Numis real estate analyst Max Nimmo said Davies encountered ‘challenges in running NewRiver and its subsequent pub portfolio, especially running into Covid’ but the market is ‘likely to welcome Davies’ lengthy experience’.

NewRiver was forced to reshape its portfolio post-Covid, focusing on ‘essential retail’ as it struggled with the demise of the high street and shopping centres when the pandemic forced the country into long-run lockdowns.

This is also led to the decision to divest and float pub business Hawthorn, which it had acquired in 2018 for £107m.

PHP shares were up 0.68% at 93p on news of Davies’ appointment, although the shares still trade on a 16% discount to total underlying return and a yield of 7.2% following a bruising year for real estate.

Liberum analyst Shonil Chande said: ‘Davies brings extensive experience to PHP and has a strong track record for growth with extensive experience in real estate and capital markets. Davies was instrumental in building NewRiver from its earliest days.’