Listed healthcare property investor, Assura, has acquired Northwest Healthcare’s UK private hospital portfolio for £500m.

The portfolio consists of fully-operational 14 assets, according to a company statement.

The transaction will be funded through cash, debt and shares, including £100m shares issued to Northwest, £266m of debt which will be refinanced through a new term loan, and £134m using £54m cash and £80m from an existing credit facility.

The assets in the portfolio comprises Northwest’s entire UK portfolio of 14 private hospitals with an average of 36 registered beds per hospital.

The estimated rental value of the properties is £30.2m, according to the company release.

With the transaction, Assura’s property value increases to £3.2bn.

Assura has more than 600 healthcare buildings in its portfolio.

Jonathan Murphy, chief executive of Assura, said: “The acquisition of Northwest’s high-quality UK private hospital portfolio accelerates the delivery of our broader healthcare strategy, securing increased exposure to the structurally supported private healthcare market as we continue to diversify our offering in line with UK healthcare demands.

“Expected to be earnings accretive in the first full year, the transaction offers attractive financial benefits including sustainable long-term top line growth to underpin a covered and progressive dividend policy.”

Ed Smith, chairman of Assura, added: “The UK healthcare crisis is getting more severe with each year, a point well recognised by the incoming Labour government.

“This worsening crisis is driving increased demand for healthcare infrastructure including private health estates, and today’s acquisition positions us as the clear leader in this sector of the market.”