The competition to acquire UK healthcare property giant Assura PLC is escalating, as Primary Health Properties (PHP) has launched a sweetened bid to outmaneuver an earlier offer from U.S. private equity firm KKR. With the future of over £2 billion in NHS-related real estate at stake, the two rival suitors are now locked in one of the most high-profile battles in the UK REIT sector.
PHP’s Revised €1.96 Billion Offer
On May 16, 2025, PHP unveiled an enhanced bid for Assura, valuing the company at approximately £1.68 billion (€1.96 billion). The offer includes 12.5 pence in cash and 0.3769 new PHP shares for every Assura share, translating to an implied value of 51.7 pence per share based on PHP’s current market price.
This revised figure represents a 4.7% premium over KKR’s all-cash bid of 49.4 pence per share, which had previously won the backing of Assura’s board. PHP’s plan would merge the UK’s two largest healthcare REITs into a single entity managing over £6 billion in assets and more than 1,000 properties.
The company forecasts annual cost synergies of £9 million, driven by operational efficiencies and increased scale, ultimately benefiting shareholders and the NHS.
KKR Defends Its €1.88 Billion All-Cash Bid
KKR and co-investor Stonepeak Infrastructure Partners made their £1.61 billion (€1.88 billion) proposal earlier this month, presenting it as a clean, cash-only offer with minimal execution risk. The bid was endorsed by Assura’s board, citing its simplicity and certainty for investors.
Following PHP’s counteroffer, KKR reiterated that its proposal provides shareholders with immediate and guaranteed value. The firm also warned that PHP’s share-based plan could introduce uncertainty and lead to higher leverage or forced asset sales—concerns that could affect future investment in NHS infrastructure.
Shareholders and Politicians React
The competing offers have sparked a debate among shareholders, institutional investors, and political observers. Several major British investment firms, including Schroders and abrdn (Aberdeen), are reportedly leaning toward PHP’s offer, citing its alignment with long-term strategic goals and retention of Assura’s London Stock Exchange listing.
Conversely, critics of the KKR offer—including UK politicians—have voiced concerns about foreign private equity taking control of vital healthcare real estate assets. They argue that long-term control by overseas buyers could undermine public interest in NHS-backed infrastructure.
Assura’s Next Move
Assura’s board has acknowledged receipt of PHP’s revised offer and is currently reviewing the terms. It has advised shareholders not to take any action until a formal recommendation is issued. Analysts suggest that if PHP’s bid gains momentum, the company could initiate a formal auction process, potentially drawing higher offers or concessions from either side.
Sector Implications
This takeover clash highlights a broader consolidation trend in healthcare real estate, where demographic shifts, infrastructure needs, and long-term lease models are drawing institutional capital. Whichever bid wins, the deal will reshape the UK’s healthcare property sector and may influence how NHS-backed infrastructure is managed and funded in the future.
With both financial value and national interest on the line, the coming weeks will be critical in determining the fate of Assura and the broader trajectory of NHS real estate ownership.
