KKR has stated that its £1.6bn takeover offer for the FTSE 250-listed healthcare real estate investment trust (REIT), Assura, is "superior" to that of the £1.68bn combination deal set out by Primary Health Properties (PHP).

The statement comes after PHP improved its offer for Assura on Friday, which if accepted, would see Assura shareholders own approximately 48% of the new combined company.

In a statement, the American global investment firm stated that its offer, valued at £1.6bn, represents a "superior proposal" for Assura shareholders and is the only proposal that provides the "opportunity to realise their investment in full and in cash".

KKR added that it has noted "numerous critical issues" in the PHP offer, which would increase the financial risk prof of the combined entity.

Along with potential disposals to manage high debt levels, the American firm stated that the combination of the two largest providers in the UK healthcare real estate sector would "attract scrutiny" from the Competition and Markets Authority.

Furthermore, KKR said that the regulator may use its powers to require PHP to maintain the Assura group as a standalone and independent business if the deal were to go ahead.

Investment director at AJ Bell, Russ Mould, stated: "Earlier in the bid battle for health facilities landlord Assura, suitor Primary Health Properties suggested investors should ignore the rival bid from private equity KKR despite it being higher given the synergies any combined entity would enjoy.

"Now the tables have turned as KKR says a new offer on the table from Primary Health, now higher than its own bid, should be spurned on the basis it might attract scrutiny from the competition authorities.

"Assura and its shareholders are in the nice situation of sitting back and awaiting the next move in a scrap which continues to drive up its take-out price."

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