A company that owns hundreds of GP surgery premises has agreed to a £1.6bn takeover by two US private firms.
Property investor and developer Assura, which currently owns 603 buildings with the vast majority being GP practices, announced last week that it has reached an agreement for a cash acquisition of its shares by US investment firms Kohlberg Kravis Roberts (KKR) and Stonepeak Partners LP.
The buyers said ensuring Assura’s current GP practices ‘continue to fulfil an essential service to communities’ will be ‘more effectively and more sustainably achieved’ in private ownership.
As of 2024, the company’s total rental income from GP surgeries, which have a combined patient list of over six million, was £87.3m – making up just under 50% of its total rental income.
Each Assura shareholder will be entitled to 49.4 pence per share, equating to a total share capital of approximately £1.608bn.
KKR and Stonepeak have formed a new company, Bidco, in order to purchase Assura.
In an joint announcement, the companies said: ‘The boards of directors of Assura and Bidco are pleased to announce that they have reached agreement on the terms of a recommended cash offer for the entire issued and to be issued ordinary share capital of Assura by Bidco.’
Assura’s non-executive chair Ed Smith said: ‘With the benefit of the additional capital that KKR and Stonepeak can provide, Assura will be able to continue to support the NHS and other healthcare providers in delivering improved health outcomes.’
Stonepeak’s senior managing director Nikolaus Woloszczuk said that Assura’s primary care premises ‘play an important role in the provision of healthcare services across the country’.
He added: ‘Ensuring that these assets can continue to fulfil an essential service to communities, now and in the future, is a core focus of the consortium and we believe this will be more effectively and more sustainably achieved in private ownership.’
As part of the Autumn Budget last year, the chancellor announced a £100m capital funding pot which is ‘earmarked’ for 200 GP estates upgrades.
The RCGP has previously called on the Government to invest £2bn into GP premises, after a survey found that 40% of GP staff think their premises are ‘not fit for purpose’.
This article was first published by our sister title Pulse
