Assura: Group snaps up 14 private hospitals as firm gears up for Labour spending spree
Healthcare property giant Assura has announced a £500m acquisition of a UK private hospital portfolio from Canadian group Northwest Healthcare Properties.
The takeover includes 14 locations averaging 36 registered beds per hospital and is predominantly based in London, accounting for 64 per cent of the assets.
The estimated rental value of these properties stands at £30.2m, three per cent above the current passing rent as of December 2023. With this acquisition, Assura’s property value is set to increase to £3.2 bn.
The company said the deal would be financed through a mix of £100m in new shares issued to Northwest, £266m in refinanced debt via a new term loan, and £134m from cash and existing credit facilities.
Jonathan Murphy, CEO of Assura, said that the acquisition marked a significant expansion into the private health sector, aligning with the company’s strategy to become a key partner for NHS primary care estates.
He said the move also complements Assura’s existing partnerships with Ramsay Health Care UK and HCA International, strengthening its ties with “top-tier healthcare providers” in the UK.
“The acquisition of Northwest’s high-quality UK private hospital portfolio accelerates our broader healthcare strategy, enhancing our exposure to the structurally supported private healthcare market.
“This complements our existing assets and benefits from our sector relationships and development capabilities as the leading UK healthcare property investor and developer,” Murphy said.
Craig Mitchell, Northwest CEO, said: “These high-quality assets represent significant future growth potential buoyed by favourable healthcare market dynamics in the UK and Assura’s sector-leading position, long-term relationships and expertise in asset management, development and enhancement.
“Our conviction in Assura and their strategy is evidenced by Northwest taking an equity stake in Assura as part of this transaction, allowing us to benefit from their future success.”