Assura snaps up private hospital portfolio for £500m
The deal, which includes two North West and a couple of Yorkshire sites, has been financed through cash and shares.
It secures Altrincham-based REIT Assura the whole of Canada-based Northwest Healthcare Properties UK’s private portfolio which comprises 14 hospitals, with tenants including Nuffield, Spire, and Circle.
Of those 14 hospitals, the North West assets are the 29-bed Lancaster Hospital, the 50-bed Spire Cheshire Hospital and in Yorkshire, the 46-bed Spire Claremont Hospital, and the 26-bed Huddersfield Hospital.
Assura says the acquisition accelerates their strategy to diversify into new sectors by fully operational assets in the private market spread across the UK.
The firm anticipates financial benefits to include earnings enhancement plus long-term, secure, and growing income through index-linked reviews.
Jonathan Murphy, Assura chief executive officer 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.
“The portfolio’s diversified occupier base, combined with our existing private occupier mix, means we now have relationships with all tier one private healthcare providers. This represents a unique opportunity to participate in the growing demand for private healthcare services to help ease growing NHS waiting lists amidst the ongoing UK healthcare crisis.”
Ed Smith, Assura chairman, said: “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.”
Craig Mitchell, Northwest chief executive officer added: “These high-quality assets represent significant future growth potential buoyed by favourable healthcare market dynamics in the UK and Assura’s sector-leading position, long-term relationships and expertise in asset management, development and enhancement.
“Our conviction in Assura and their strategy is evidenced by Northwest taking an equity stake in Assura as part of this transaction, allowing us to benefit from their future success.”
Assura were advised by Barclays Bank, CMS, and Addleshaw Goddard on the deal.
