Client: Syston Health Consortium
Banks Long & Co Lead: Tim Bradford
The Brief: Syston Health Centre is a state-of-the-art, three-storey health centre building developed by a consortium of forward-thinking GPs.
The building, which covers 2,575 sq.m and is surrounded by a large patient car park, was let to two independent GP Practices, an NHS Trust, and a stand-alone pharmacy.
Banks Long & Co were instructed to work with the parties to create a saleable asset for the freehold owners, before selling the health centre in its entirety for its maximum valuation.
Prior to the firm’s involvement, the development’s multi-occupancy nature created a number of issues, and it was therefore important that the buyer was able to work with the tenants and the GPs in managing the site going forward.
Banks Long & Co Solution: It was crucial to invest significant time in working with the two independent GP Practices to agree on a variety of factors. These factors primarily centred around the future management of the health centre by a third party owner.
Once the structuring strategy for offering the surgery to the market had been agreed, Banks Long & Co engaged with a small number of specialist surgery investors, with both the price and the eventual owner of the health centre major considerations.
The Results: Investing significant time at the front end of the sale process, Banks Long & Co offered a clean, top-quality health centre investment to buyers. The investors’ significant portfolios and reputation in the market enabled them to demonstrate that they had in-house management systems capable of running a multi-occupied site such as Syston Health Centre.
It was important for the tenants on-site that the successful buyer could smoothly run the Health Centre and allow the GPs to focus their time on delivering their core primary care service.
Through a targeted competitive disposal strategy, the Centre was eventually sold to Primary Health Properties, who were able to deliver a significant capital receipt for the freehold owners and provide tenants with the comfort of ongoing management.