KKR and Stonepeak have agreed to acquire Assura, a UK healthcare REIT specialising in primary care facilities, in a £1.61 billion ($2.1 billion; €1.9 billion) take-private deal, the buyers and seller said in a joint statement on the London Stock Exchange.

Assura builds, owns and manages a portfolio of 603 medical centres across the UK, primarily leased to general practitioner (GP) practices and the NHS.

The portfolio was valued at roughly £3.1 billion as of last September, while Assura’s passing rent roll as of 31 March was £177.9 million.

The offer price of 49.4 pence per share represents a 31.9 percent premium to Assura’s closing price on 13 February and a 30.6 percent premium to its three-month volume-weighted average.

The offer implies an enterprise value of roughly £2.39 billion, equating to an EBITDA multiple of around 18x based on Assura’s 2024 full-year EBITDA of £129.5 million.

The all-cash transaction, to be made via Sana Bidco – a newly formed company indirectly owned by KKR and Stonepeak – a strategic move into healthcare property.

KKR’s core infrastructure fund is leading the investment, with Stonepeak providing minority capital through its global core fund.

The two investors will each hold a 50 percent stake in Assura upon completion, a source close to the deal told Infrastructure Investor Deals.

Having launched in 2020, KKR’s core fund reached an eighth close last month on $11.11 billion.

Stonepeak’s core fund meanwhile had a first close on $3.1 billion in June 2023.

The agreement follows a protracted courtship, with KKR having submitted five non-binding proposals to Assura over the past six months. The first four, which at one point involved the Universities Superannuation Scheme (USS), were rejected by the board.

Assura also received a £1.5 billion ($2 billion; €1.7 billion) offer from LSE-listed peer Primary Health Properties last week, comprising cash and shares.

PHP is another REIT which rents healthcare facilities in the UK and Ireland.

However, the board rejected PHP’s offer in favour of the 49.4 pence all-cash bid from KKR and Stonepeak, citing its higher value and lower risk.

KKR and Stonepeak said that their acquisition of Assura would offer long-term, inflation-linked cashflows underpinned by a portfolio of critical infrastructure, aligning with their infrastructure strategies.

The two investors added that they would inject “new and flexible capital” to enable Assura to invest in more healthcare buildings without the need for asset sales or recycling.

Bidco noted that anticipated changes to upper management, corporate and support areas would likely result in a “material reduction in headcount” against Assura’s employee base of 79 people.

Assura’s board recommended the deal, calling it a “compelling opportunity” for the company’s shareholders.

The acquisition requires 75 percent shareholder approval and is expected to close in early Q3 2025.

Jefferies is acting as financial adviser, Bowmans as local counsel and Simpson Thacher & Bartlett as legal adviser to KKR and Stonepeak.

Lazard, Barclays and Stifel are acting as financial advisers and Travers Smith as legal adviser to Assura.

KKR declined to comment.