The CEO of Assura plc, the Altrincham-based FTSE 250 healthcare real estate investment trust (REIT), said the UK’s healthcare crisis is “getting more severe by the year” which in turn is driving increased demand for healthcare infrastructure.
Jonathan Murphy said he is looking forward to working with whichever party is in Government following the election.
Assura and the Liverpool-based Universities Superannuation Scheme Limited (USS) announced in May they have entered into a new £250 million 20:80 joint venture “to support investment in essential NHS infrastructure.”
Assura published a trading update on Thursday for the first quarter ended June 30, 2024, saying it has a portfolio of 612 properties with an annualised rent roll of £149.2 million (March 2024: £150.6 million).
The firm said it has a pipeline of opportunities for strategic expansion and further growth.
“Currently on site with five developments; total cost of £46 million (March 2024: eight, £92 million) of which £32 million is remaining to be spent …” said Assura.
“Immediate development pipeline of five schemes (total cost of £28 million) (March 2024: five, £28 million) …”
Murphy said: “Over the first three months of our financial year we have continued to deliver on our strategic objectives, and remain extremely well-placed to help support the NHS and wider healthcare market: we deliver an exceptional product, have a strong financial position, and have a culture that focuses on all of our stakeholders to ensure we build strong relationships for the long-term.
“At our results in May, we announced we had entered into a £250 million joint venture with USS, the largest private pension scheme in this country.
“This represents a significant and exciting step for Assura, providing further diversity of funding for future growth.
“It also allows us to recycle capital into our pipeline of opportunities across broader healthcare markets including with NHS Trusts, private hospitals, mental health and in Ireland.
“We continue to look at further emerging opportunities which could be funded through a variety of sources, including third party capital, whilst operating within our stated LTV (loan to value) policy range of 40-50%.
“The UK healthcare crisis is getting more severe by the year, which in turn is driving increased demand for healthcare infrastructure. The requirement for investment in this space has received cross-party political support, and we look forward to working with whichever party is in Government following today’s election.”