UK's Primary Health Properties Survives KKR Bid for Assura to Form Largest Publicly Traded Healthcare Landlord

UK Primary Health Properties has successfully acquired Assura Plc, creating the country's largest publicly traded healthcare landlord. The deal brings together PHP's £2.81 billion portfolio and Assura's £3.1 billion assets, valued at £6 billion. The bid fended off a rival offer from KKR and Stonepeak Partners, which had garnered 5.95% of the votes. The deal signals confidence in the UK primary care property market's recovery and marks a transformative moment for the sector.

UK Primary Health Properties (PHP) has successfully acquired Assura Plc, creating the country's largest publicly traded healthcare landlord. The deal brings together PHP's £2.81 billion portfolio and Assura's £3.1 billion assets, valued at £6 billion. The bid fended off a rival offer from KKR and Stonepeak Partners, which had garnered 5.95% of the votes [1].

The acquisition marks a transformative moment for the UK primary care property market. Panmure Liberum analyst Bjorn Zietsman noted, "PHP’s successful acquisition of Assura will mark a transformative moment for the UK primary care property market" [1]. The deal signals confidence in the UK primary care property market's recovery, with UK interest rates coming down and a lack of development supporting expectations that rents will rise [1].

The UK's publicly traded landlords have endured a succession of shocks, from Brexit through the pandemic to the end of low interest rates, which left them trading at wide discounts to the reported value of their assets for almost a decade. This prompted a slew of private equity-backed bids, offering shareholders the chance to cash out at or close to their reported valuations and significant premiums to their share prices [1].

PHP secured 62.93% of acceptances from shareholders by Tuesday’s deadline, taking it past the required 50% and fending off a bid from KKR and Stonepeak Partners that had garnered 5.95% of the votes according to the most recent tally Monday [1]. The UK's competition watchdog scrutinized the deal and required the combined company to sell off a stake in a portfolio of private hospitals to bring down its debt levels [1].

The defeat caps a 10-month pursuit by KKR, which originally approached Assura about a takeover last year in a consortium with the Universities Superannuation Scheme. It made a series of proposals — and joined forces with Stonepeak Partners in its subsequent offers after USS withdrew — eventually winning Assura management’s recommendation in April [1].

PHP originally expressed its interest in a combination shortly after KKR’s pursuit became public in March, and eventually unseated the private equity consortium’s final offer with a sweetened cash and share bid that valued Assura at £1.79 billion in June [1]. The deal was being closely observed by a sector that’s subject to several takeover battles [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-12/php-pips-kkr-in-battle-to-buy-uk-health-care-landlord-assura
[2] https://www.marketscreener.com/news/update-2-uk-regulator-clears-boeing-takeover-of-spirit-aerosystems-ce7c5edcd08af22d
[3] https://www.ainvest.com/news/group-plc-record-q2-earnings-strategic-positioning-uk-retirement-market-deep-dive-sustainable-growth-attractive-valuation-2508/