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.
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All healthcare in the U.K. from GPs to hospital should be private – the monopoly run by the government is literally killing the uk- let’s hope we head to an insurance model as quickly as possible
By Stuart wood
It definitely shouldn’t, Stewart.
You’re obviously coming from a privileged position.
Healthcare should be based on medical need, not wealth.
By Anonymous
@Stuart Wood you are spot on
By Anonymous
Healthcare in all developed countries is based on multiple providers and insurers – the U.K. has one provider and has the worst healthcare outcomes in the developed world
By Stuart wood
And if you cannot afford to pay for the mulitiple managers, administrators, PR staff, accounting staff, bonuses and shareholder dividends, and wasted duplication, do not be ill, just die. Like in the USA. The land of the free with unlimited opportunity to fall into absolute poverty because you cannot afford to pay for your family medical bills. The worst healthcare outcomes in the developed world ? Have you checked the USA?
By Anonymous
the USA has far better healthcare than the UK, miles ahead
By Anonymous
@August 09, 2024 at 1:04 pm
By Anonymous
If you can afford it, yes.
It’s the French system we should consider though, not the American one. Some of the world’s best health incomes plus more fair.
By Anonymous
The french system isn’t more fair at all, the American system is actually fair, you get what you work for, french healthcare is better than the UK but worse than the USA
By Anonymous
@August 11, 2024 at 2:00 pm
By Anonymou
When I think of best healthcare, I think of health outcomes. Typically, the libertarians on here only think of money and the self.
I think you need to live in the USA or be an American to know what you’re talking about.
By Anonymous
Why do people always focus on America, places like Japan, Singapore and Switzerland have amazing healthcare outcomes yet all have a varied insurance model – stop forcing on America (even through its better than the U.K.) and focus on the top systems and basically move as quickly as possible to there
By Stuart wood
Think some of you are confusing access to healthcare for the quality of it and visa versa. I’m slightly torn on the issue myself given we are now approaching a crumbling NHS which is basically being abused by nearly all parties involved. However denying someone to life saving healthcare is pretty shocking IMO and there’s also no guarantee that making the NHS private will make the overall state of things better.
By Anonymous