UK’s Assura, USS team up on NHS community health buildings

UK PROPERTY developer Assura is forming a £250 million (S$428 million) joint venture with Universities Superannuation Scheme (USS) aimed at boosting investment in National Health Service (NHS) infrastructure.

Assura will transfer seven properties valued at £107 million to the joint venture, which will have an initial life span of 20 years, it said in a statement on Tuesday (May 21). The UK real estate firm will hold a 20 per cent stake and act as manager of the buildings, with USS – a pension scheme for universities and higher education institutions – holding the balance.

The partners are targeting acquisition-driven growth to £250 million over the next three years, with potential to reach £400 million.

The deal will help Assura, which expects net cash proceeds of £85 million, to invest in its development pipeline at a time when borrowing costs to finance new projects are ballooning. Rising inflation is encouraging pension funds to push into properties with index-linked leases.

“The joint venture will focus exclusively on assets let directly to NHS or GP tenants with rents linked to inflation or with fixed uplifts,” Assura said.

Assura, whose shares have dropped 12 per cent this year, traded down 0.6 per cent as of 9.55 am local time in London. BLOOMBERG