The bidding battle for NHS landlord Assura has heated up after healthcare investor Primary Health Properties (PHP) said it had made an offer worth £1.68 billion.
It outbids the £1.61 billion takeover price offered by US private equity giants Kohlberg Kravis Roberts (KKR) and Stonepeak Partners, which Assura said it had accepted last month.
The takeover tussle for the medical property giant has seen both bidders up their offers several times to try and clinch a deal.
Assura owns more than 600 buildings, including doctors’ surgeries, with a portfolio valued at around £3.1 billion. It has about 80 members of staff.
In April, it said it had agreed to be bought by the consortium led by KKR and Stonepeak, but the deal has not been finalised and it would need to be approved by shareholders.
Assura said at the time that the deal will help it “accelerate its growth via additional investment in critical healthcare infrastructure in the UK and Ireland”.
PHP has muscled in with an improved bid – the latest offering 51.7 pence per Assura share, valuing the company’s entire share capital at about £1.68 billion.
The investment group said a takeover would create a combined portfolio worth £6 billion, and that it could lead to an estimated £9 million worth of cost-savings.
Mark Davies, PHP’s chief executive, said the benefits of a takeover were “compelling”, adding: “This is an important moment for primary care real estate.”
“Property valuations are improving and rental growth prospects are strongly underpinned by high demand for space at a time the Government is committed to a shift from secondary to primary care,” he said.
