US private equity firms KKR and Stonepeak Partners agreed to acquire UK-listed healthcare property group Assura in a £1.61bn deal, following a competitive bidding process that highlighted growing investor interest in essential infrastructure assets.

KKR and Stonepeak tabled a final offer of 49.4p per share to secure the transaction, outbidding a £1.5bn proposal from Primary Health Properties (PHP), which Assura’s board deemed insufficient.

Assura owns a £3.1bn portfolio comprising more than 600 healthcare properties across the UK and Ireland, primarily focused on general practitioner surgeries and community care buildings. Despite its substantial asset base, the company employs just 79 people.

Jonathan Murphy, CEO of Assura, said the deal would enable the company to accelerate its investment in critical healthcare infrastructure, leveraging the financial and operational support of two highly experienced private equity backers.

The deal adds to KKR’s growing exposure to UK infrastructure and real estate. The firm recently emerged as the preferred bidder for an equity stake in Thames Water, England’s largest water utility, as it seeks to stabilise its finances through new investment.

For Stonepeak, which specialises in infrastructure and real assets, the Assura deal reinforces its commitment to long-duration, yield-generating platforms in the UK and Europe.

KKR and Stonepeak said they intend to invest in Assura’s future growth, bringing “deep pockets and an understanding of UK infrastructure and real estate” to the platform.