NHS’s attempts to deploy capital investment in primary care - help or hindrance?4th April 2019

John Hearle FRICS MCIArbMedical Premises Consultant – Aitchison Raffety

Director (non exec) – MedicX FundJoint Chair – Primary Care Premises Forum

NHSE Capital Grants• 2016 £1.0b ETTF• SPT Monies

CCG Capital Grants• CIL & 106 Monies• London Improvement

Grant

CCG Capital Grants• CIL & 106 Monies• London Improvement

Grant

The Success – Where Capital has Helped

• Operations under the 2013 PCD• Improvements to GP Owned Premises

The Problem - Where Capital has become a Hindrance

• To CCGs a Capital Grant = Reduced Rent Reimbursement

• No NHSE Directions or Formal Procedures

• Informal Procedure Grant = Loan

New Primarycare Hub of 2,650 m²• Rent £500,000 pa• NIY 5% - MV £9.35m • 40% NHS Grant at 4%• 20 year lease and repayment period

NIY reduced to 3.8%• 25 year lease and repayment period

NIY reduced to 4.4%

New Primarycare Hub of 2,650 m²• Rent £500,000 pa - NIY 5% - MV £9.35m • 40% NHS Grant at 4%• 20 year lease and repayment period NIY

reduced to 3.8%• Reduce NHS return to 3.5% and increase

term to 30 years achieves 5%• Reduce NHS Grant to 20% 5% NIY achieved

with a 25 year lease

Valuations | Rent Reviews & Lease Renewals Notional Rent Appeals (CMR) Investment, Sale & Leaseback | Building & Condition Surveys | Planning & Development Property Management | Assistance with NHS Grant Funding

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