The healthcare investor has acquired primary care developer Apollo Capital Projects Development for an undisclosed sum, as it seeks to increase its development activity.
“Development is a really profitable part of the business for us and will continue to be very important for Assura’s growth in 2021,” chief executive Jonathan Murphy told Place North West last month.
Under the deal, Warrington-based Assura will acquire Apollo’s four-person development team, boosting the firm’s own development function to 11 specialist surveyors.
The acquisition also increases Assura’s immediate and extended development pipeline by an initial eight schemes with an estimated total capital expenditure of £50m, the company said in a filing today to the London Stock Exchange, where its shares are traded.
Assura is currently forward funding an Apollo development scheme in Beaconsfield, Hampshire. Under the deal, that live scheme will be to an in-house development, the statement added.
Ipswich-based Apollo has been developing specialist healthcare property for 20 years and its development director is Richard Drew. It is the second corporate acquisition for Assura in as many years, after it bought primary care provider GPI for £92m in May 2019.
Assura had an immediate development pipeline totalling £60m and was on site with 15 UK developments totalling £71m as of 31 December 2020, the company said in a trading update last month.
Its immediate acquisitions pipeline for deals expected to complete within the ensuring 3-6 months stood at £80m as of the end of last year.
Murphy said: “The acquisition of Apollo will further enhance our sector-leading in-house development capabilities and substantially expand our pipeline, which is already the largest in our history.
“Following our acquisition of primary care developer GPI in 2019, this is another important step in our growth story that further deepens our understanding of the future trends shaping the sector, from building design to sustainability.
“Expanding our offer to the NHS as its partner of choice has never been more vital than it is today. As Apollo’s colleagues integrate into Assura, we look forward to working together to continue creating outstanding spaces for health services in our communities.”