The Board of Assura plc has announced it has agreed with Northwest Healthcare Properties to acquire its fully operational UK Private Hospital Portfolio comprising 14 assets for a consideration of £500 million. This will be fully funded through a mix of cash and shares including:

–       245,298,262 or c.£100 million of consideration shares issued to Northwest on a 30-day VWAP basis, and subject to a six-month lock-in agreement;

–       £266 million of debt, which has been refinanced through a new term loan; and

–       £134 million using £54 million of cash and drawing down £80 million from the Group’s existing revolving credit facility.

Assura believes there is significant opportunity in the structurally-supported private hospital market with strong growth potential and attractive investment characteristics, as outlined at its Capital Markets Event in February. All three strands of private (PMI, self-pay and NHS-referred) are experiencing growing demand with the private market providing essential capacity to local healthcare infrastructure. Assura has the skills to capture these opportunities given its long-term relationships in healthcare, its development and asset enhancement capabilities and focus on social impact and sustainability. 

The Acquisition significantly accelerates Assura’s strategy to diversify into new sectors at scale by adding high-quality, fully operational assets in the private market spread across the UK at an attractive price. It also brings with it a number of financial benefits including earnings enhancement, long-term, secure and growing income through index-linked reviews and supports a covered and progressive dividend policy. As a result of the Acquisition, Assura is uniquely positioned in the UK as a diversified healthcare REIT.