Primary Health Properties (PHP) has confirmed that UK authorities have raised no competition concerns regarding its proposed £1.7 billion (R22.61 billion) acquisition of Assura plc.
The London and JSE-listed Real Estate Investment Trust (REIT) said on Wednesday that, following this decision, the requirement by the UK’s Competition and Markets Authority (CMA) to keep PHP and Assura financially and operationally separate, is expected to conclude shortly.
PHP first announced its firm intention to acquire Assura on May 16, 2025. Assura develops, invests in, and manages healthcare facilities across the UK, while PHP focuses on purpose-built properties for healthcare practitioners and other primary care providers—primarily NHS-backed tenants.
PHP aims to capitalise on the fact that more than one-third of the UK’s primary care estate requires modernisation or replacement. PHP believes that limited capacity in existing facilities poses a significant barrier to implementing government policies aimed at expanding community-based care, including initiatives such as social prescribing, clinical pharmacists, mental health services, and minor operations.
“PHP will now turn its full attention to integrating the two businesses and realising the full benefits of the combination, including delivery of the expected run-rate cost synergies of at least £9 million,” the board said.
As of March 31, 2025, Assura’s property portfolio was valued at £3.1bn, up from £2.71bn the previous year. It paid a dividend of 3.34 pence per share, compared to 3.24 pence in the prior year. PHP’s portfolio was valued at £2.8bn for the year ended 31 December 2024, with a 3% increase in its dividend to 6.9 pence per share.
“The management team can now focus on integrating the two companies and is excited about the opportunities this presents. Together, we will create a £6bn healthcare REIT that owns, manages, and invests in critical social infrastructure assets—positioning us strongly for future growth,” said PHP CEO Mark Davies.
“We are pleased with the CMA’s decision and appreciate the work done by their team during the review,” Davies added.
The earnings-accretive transaction is expected to deliver strategic and financial benefits, including a lower cost of capital and a robust platform for accelerated expansion.
“With our combined scale, expertise, and relationships—and a lower cost of capital—we are well placed to deliver modern, flexible healthcare buildings in communities across the UK and Ireland,” Davies said.
“I’m looking forward to working with our new colleagues from Assura and helping the NHS deliver its 10-year plan by shifting more patients into primary care, which will ultimately help the NHS save money,” he concluded.
BUSINESS REPORT
