Assura plc and Universities Superannuation Scheme Limited announced they have entered into a new GBP 250 million 20:80 joint venture to support investment in essential NHS infrastructure. A strategic partnership has been formed between USS, the principal pension scheme for universities and higher education institutions in the UK with over GBP 75 billion of assets under management, and Assura, the specialist healthcare property investor and developer. This long-term partnership will support investment into essential NHS community healthcare buildings, which help to address the current backlog of patients waiting for care.

As the population ages and more people live with chronic conditions, modern, flexible healthcare buildings are central to the NHS's priority of delivering more care closer to patients. The joint venture has an initial term of 20 years and will be seeded with an initial agreed portfolio of seven assets (GBP 107 million), transferred from Assura's existing portfolio at a small discount to the March 2024 valuation. The joint venture is targeting acquisition-led growth to GBP 250 million over the next three years, with potential to grow to GBP 400 million thereafter.

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 will retain a 20% equity interest in the JV and act as property and asset manager, receiving asset management fees linked to the valuation of the portfolio. The transaction will further strengthen Assura's balance sheet, bringing additional diversity to the available funding sources to support Assura's continued growth trajectory.

It is intended that the net cash proceeds received (GBP 85 million) will be recycled into Assura's attractive pipeline of acquisition and development opportunities across medical centres and broader healthcare markets. Lazard & Co., Limited acted as exclusive financial adviser to Assura.