INTERVIEW: Assura Rents Increase Despite Budget Pressure

29th Jun 2010 10:14

By Jason Douglas Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Healthcare company Assura Group Ltd. (AGR.LN) Tuesday said it is still enjoying rent increases on its properties despite a squeeze on public finances in the U.K. Rent on Assura's health centers is ultimately paid by the state-run National Health Service and Assura said rent reviews led to a 3.5% increase across its properties on average during its fiscal year to the end of March. Chief Executive Officer Nigel Rawlings told Dow Jones Newswires Assura is still enjoying rent increases when leases come up for review--in some cases around 4%. Rawlings said Assura expects further rent increases, as it isn't receiving market prices at some locations. Front line services in the U.K.'s health service are shielded from current public spending cuts, according to the government. Rawlings said Assura has commitments from the NHS for a pipeline of development projects worth GBP83 million. These could be delayed but the effect on Assura wouldn't be serious, he said. Longer term, the company expects to benefit from greater private sector involvement in providing healthcare, he added. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] (END) Dow Jones Newswires June 29, 2010 05:14 ET (09:14 GMT)