Assura has acquired the UK private hospital portfolio of Northwest Healthcare Properties REIT for a cash consideration of £500m.

The British-based property business said the acquisition “significantly accelerates” its strategy into new sectors, by adding “high-quality, fully operational assets in the private market spread across the UK at an attractive price”.

The portfolio comprises 14 fully operational private hospitals, with an average of 36 registered beds per hospital.

The portfolio has an estimated £30.2m rental value, which is 3% above passing rent based on latest estimated rental value.

The acquisition is fully funded through a mix of cash and shares including £100m of consideration shares issued to Northwest, £266m of debt, which has been refinanced through a new term loan and £134m, using £54m of cash and £80m drawn down form the group’s existing revolving credit facility.

Chief executive officer at Assura, Jonathan Murphy, said: "The acquired portfolio - with long average lease length of 26 years and index-linked rent reviews - complements our existing assets and will benefit from our sector relationships, development and asset enhancement capabilities as the leading listed UK healthcare property investor and developer.

"Expected to be earnings accretive in the first full year, the transaction offers attractive financial benefits including sustainable long-term top line growth to underpin a covered and progressive dividend policy. While the strength of our balance sheet has supported refinancing at an attractive rate, we intend to reduce our leverage in the next 18-24 months via a targeted disposal programme."

Chairman at Assura, Ed Smith CBE, added: "The UK healthcare crisis is getting more severe with each year, a point well recognised by the incoming Labour Government. This worsening crisis is driving increased demand for healthcare infrastructure including private health estates, and today's acquisition positions us as the clear leader in this sector of the market. We are now better positioned than ever to use our expertise and capital to help support the NHS and the country's wider healthcare market as together we address the health challenges of the modern day."

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