Assura Group to acquire AH Medical Properties

The acquisition is expected to create in the UK a major primary care medical property and pharmacy group with property assets of £504m.

Assura has also entered into a number of arrangements with Ashley House whereby, subject to the satisfaction or waiver of certain conditions (including the approval of the Independent AHMP Shareholders), it will acquire three development properties from Ashley House.

Assura will grant a period of exclusivity to Ashley House to undertake due diligence into Assura’s LIFT operations (but not investments).

It will receive a right of first refusal to acquire all future projects developed by Ashley House for a period of six months.
The company will make a loan to a joint venture special purpose vehicle established by AHMP and Ashley House to develop land at Scarborough.

Finally, conditional upon the offer becoming unconditional in all respects, terminate Ashley House’s existing asset management agreement with AHMP.

Assura chairman Rodney Baker-Bates said the transaction, which is expected to be earnings enhancing, will create the leader in the UK primary healthcare property investment market.

It combines two high quality medical property portfolios generating excellent returns and enables us to deliver improved value to existing and new shareholders by leveraging our cost-effective, internally-managed structure," Baker-Bates said.

"We are also pleased to benefit from AHMP’s three development opportunities, as well as the pipeline provided from our arrangements with Ashley House."

Assura owns and invests in primary care property across the UK, in partnership with GP practices and PCTs, to develop new, modern premises according to local need.