Primary care property investor and developer Assura says it is continuing to work towards converting to a REIT in a trading update announced today.
The group said since March its rent roll had increased by £0.9m to £35.8m, an increase of 2.43%, primarily from asset management and development.
Its average weighted unexpired lease term is now 16.2 years – slightly down from 16.5 years this time last year.
Assura said its weighted average annual rent increased by 2.14% from 42 rent reviews settled in the period from 1 April 2012 to 15 August.
The group has established a process for “critically evaluating the core portfolio” and will continue to recycle capital after disposing of a number of smaller properties during the period.
It said that more than half the non-income producing buildings identified as non-core at 31 March have been sold or are in solicitors’ hands, raising £2.7m at an average 10% premium to their book value at 31 March 2012.
The capital released through non-core disposals has been reinvested in a 12,000 sq ft primary care centre in Bilborough, Nottingham, incorporating a pharmacy and dental surgery for £2.7m, adding some £0.2m to annualised rents.
On its development pipeline it said three developments, at Wallasey, Gelligaer and Church Gresley, have completed since 1 April 2012 with a combined value of some £6.5m adding £0.4m to annualised rents.
A further seven developments, including Sudbury, are anticipated to start on site within the next six-to-12 months, with an estimated end value of £30m.
Chief executive Graham Roberts said: “I am very pleased with our progress in the first quarter. We delivered a solid performance, with the group’s continued focus on asset management and development leading to an increased rent roll and new development opportunities.
“Primary care property is an attractive asset class and the sector has proven its relative value with economic and political pressures supporting its continued growth.
“Assura’s reputation as a leading operator in the sector, combined with its skills and record of outperformance, means that the Group is well placed to capitalise on market opportunities as they arise.”
Bridget.o’connell@estatesgazette.com
