Primary healthcare property investor Assura Group is to convert to a REIT.
In its annual results for the year to 31 March, chairman Simon Laffin said that the conversion to the tax-efficient vehicle “would be in the best long-term interests of shareholders”.
He added: “A key feature of REITs and the attraction of our business model is the importance of paying sustainable and growing dividends.”
In March the company, now run by former British Land finance director Graham Roberts, announced that it would in future pay dividends quarterly to reflect its three-month rental income cycle.
HMRC this week ended its consultation on proposed changes to the regime, including the abolition of the entry charge. This means that from July next year, companies converting to REIT status will not have to pay 2% of the value of their properties.
Assura would become the second primary healthcare property REIT after Primary Health Properties.
The group’s net asset value fell by 35% to 36.3p during the year because of the loss arising from the £69m cost of closing out an interest rate swap.
Assura Group’s “core” portfolio, valued at £505m, comprises 158 medical centres located across the UK.
