Assura has agreed to a takeover offer proposed by KKR, valued at just over £1.6bn.

A FTSE 250-listed healthcare real estate investment trust (REIT), Assura specialises in the development, investment and management of primary care centre, hospitals and other specialist healthcare properties.

The REIT is a long-term property partner to more than 600 healthcare buildings across its four markets, which include GPs, NHS Trusts, private providers and the Republic of Ireland.

KKR is a US-based global investment firm with $638bn in assets under management as of December 2024.

The offer values Assura at 49.4 pence per share, which represents a 31.9% premium on its share price on 13 February.

Under the deal, Assura shareholders will receive 48.56 pence per share in cash and a quarterly interim dividend of 0.84 pence, which will be paid today.

The board at Assura has recommended that its shareholders accept KKR’s bid.

Partner, co-head of EMEA and co-head of European infrastructure at KKR, Tara Davies, said: "Assura is a market leader in healthcare infrastructure and we share the company's objective of building best-in-class facilities to support the delivery of national healthcare objectives.

"Delivering this effectively requires significant investment in Assura's platform, a long-term perspective and the ability to fund Assura's growth through long-term and flexible capital. Together, KKR and Stonepeak bring deep pockets and understanding of UK infrastructure and real estate, and a shared track record of accelerating growth and investment."

Alongside agreeing to KKR’s offer, Assura has rejected Primary Health Property’s (PHP) £1.5bn combination offer made last week, stating that the proposal was "not at a level that is sufficient to be recommended to shareholders".

Head of property research at Quilter Cheviot, Oli Creasey, commented: "The KKR cash offer is, on paper, worth more than the shares from PHP. While the bid from PHP would put less cash in the pocket of Assura investors, it allows them to retain an investment in the primary healthcare subsector, and in a larger combined company, providing both diversity and improved liquidity.

"Many Assura investors value the firm’s high and secure income yield; something that is next to impossible to find elsewhere on the stock exchange. Investors with a long-term outlook may see reasons to value the PHP bid, or Assura’s continued existence as a standalone company, as worth more than the cash offered by KKR given the challenge of reinvesting it."

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