It has been reported that Blue Owl Capital Inc. (OWL.US) has finalized a deal to acquire a portfolio of UK private hospitals from Malaysia's Employees Provident Fund (EPF).

Sources indicate the alternative asset manager purchased 12 Spire Healthcare hospitals for approximately £1.3 billion, equivalent to $1.7 billion.

Additional sources familiar with the matter noted that the properties are currently managed by Moor Park Capital Partners, which will continue in its role as asset manager following the transaction's completion.

One source stated that this hospital portfolio investment was executed through Blue Owl's European Net Lease Fund, which has raised around €1.3 billion in capital to date.

Previous reports had suggested that EPF appointed real estate agency Knight Frank to handle the sale of this portfolio last year.

While commercial real estate transactions have slowed significantly since the end of the low-interest-rate era, properties with long-term leases and inflation-linked rents have become a rare bright spot, as they help investors hedge against inflation risk.

This dynamic has fueled a surge in healthcare property deals, with such assets attracting further investor interest due to tenants often being government-backed or quasi-government entities.

The acquisition of rival Assura by Primary Health Properties Plc ranked among the UK's largest real estate transactions last year, having sparked a fierce bidding war with KKR (KKR.US) at the time.

Following that acquisition, Primary Health Properties is now in discussions with GIC Pte Ltd to sell a partial stake in a £700 million private hospital portfolio, aiming to reduce leverage levels post-deal.

As the UK's National Health Service (NHS) continues to struggle with pandemic-related waiting list backlogs, the proportion of UK residents utilizing private healthcare services is on the rise.

According to a survey by market research firm YouGov, within the 12 months leading up to August 2025, one in seven people had used private healthcare services for themselves or a family member.