KKR & Co’s near year-long pursuit of UK healthcare landlord Assura is set for a decisive vote, with shareholders required to decide by 12 August between an all-cash proposal from the US private equity giant and Stonepeak Partners, or a £2.4bn ($3.1bn) cash-and-share deal from Primary Healthcare Properties (PHP).

Assura’s board has reaffirmed its backing for PHP’s bid, rejecting the rival offer from KKR and Stonepeak despite the private equity consortium’s improved terms now carrying a slight premium after recent share price declines for both Assura and PHP, according to sources cited by Bloomberg.

The contest underscores a broader trend in UK real estate, where private equity is actively targeting undervalued landlords amid subdued market conditions. KKR and Stonepeak have argued their cash bid offers “risk-free value” to investors, while PHP’s offer provides exposure to a potential property market recovery.

Institutional support for PHP remains strong, with Baillie Gifford, Aberdeen Group, Schroders, and Allianz among those backing its proposal. These investors believe the healthcare property sector has passed its cyclical low and is poised for attractive returns. However, acceptance levels for both bids remain low as the deadline approaches.

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