Primary Health Properties trumps US takeover bid with £1.68bn offer
LONDON, 17 May 2025 – A fierce bidding war has erupted over NHS landlord Assura, as UK healthcare investor Primary Health Properties (PHP) announced a new £1.68 billion offer, surpassing a previously accepted bid from US private equity consortium Kohlberg Kravis Roberts (KKR) and Stonepeak Partners.
PHP’s improved bid of 51.7 pence per Assura share has intensified the battle for control of one of Britain’s largest owners of primary healthcare facilities, nudging ahead of the £1.61 billion proposal put forward by KKR and Stonepeak just last month.
Assura, which owns and manages more than 600 healthcare buildings across the UK — including GP surgeries and community health centres — boasts a property portfolio valued at approximately £3.1 billion. With around 80 employees, the company has played a key role in supporting frontline NHS services through its real estate assets.
The US-backed consortium’s original offer had been accepted in principle by Assura’s board in April, who hailed it as a means of “accelerating growth via additional investment in critical healthcare infrastructure in the UK and Ireland.” However, the transaction is still subject to shareholder approval, leaving the door open for rival bidders.
PHP has seized the opportunity, announcing a higher bid and claiming that its proposal is not only financially attractive but strategically sound. The firm stated that combining the two portfolios would result in a £6 billion property empire, specialising in NHS-aligned medical real estate, and generate an estimated £9 million in annual cost savings.
Mark Davies, Chief Executive of PHP, described the takeover attempt as a pivotal moment for the sector. “This is an important moment for primary care real estate,” he said. “Property valuations are improving, and rental growth prospects are strongly underpinned by high demand for space at a time when the Government is committed to shifting healthcare delivery from secondary to primary care.”
Analysts say the duel between private equity and a homegrown healthcare property firm highlights growing investor appetite in the resilient medical infrastructure sector, particularly with the NHS under increasing pressure to expand and modernise localised care.
PHP, a FTSE 250 firm with a longstanding reputation in the sector, is keen to consolidate its influence by snapping up Assura’s extensive portfolio. The acquisition would create a dominant force in UK healthcare property investment, potentially unlocking synergies and streamlining operations across a wider geographic spread.
More Read
Assura’s board has acknowledged receipt of PHP’s bid but has yet to formally comment on whether it will reconsider its agreement with KKR and Stonepeak. Under UK takeover rules, the board must now assess whether PHP’s bid constitutes a “superior proposal” and act in the best interests of its shareholders.
One City analyst commented: “It’s now a question of which deal aligns more with long-term strategic growth and stability. While the US consortium offers significant investment potential, PHP brings sector expertise and synergies that could deliver quicker returns.”
The competing offers come as the Government continues to emphasise investment in primary care infrastructure, aiming to reduce the burden on hospitals and bring more services into local communities.
With both bids still live and shareholders due to vote on any final deal, the next few weeks are expected to bring further developments in what is shaping up to be one of the most closely watched takeovers in the UK property and healthcare sectors this year.
