Ask The Experts - Surgery Relocation

Published:09/05/2008

Question

We rent a small surgery attached to a house from our former senior partner. She now wants to sell both buildings and, coincidently, our PCT wants us and three other practices to move to shared premises in 2010 when they have been built. The new surgery proposal includes the developer buying up the old surgery buildings in 2010.

Is it a good idea to convince the developer that it should buy our premises from the ex- senior partner now? This would enable us to stay where we are until the new development is ready. Alternatively, should we buy the building now and re-sell it in 2010?

Answer

The key element is what the PCT is looking to achieve. Is the development of the new centre a key part of its estates plan? Or could it be derailed by a different primary care centre scheme elsewhere in its area?

The problem with the practice buying the premises now is that you would be taking on the risk of any property speculator. The value of the premises can go down as well as up. There would be a major risk that, with the rapidly changing views and plans of many PCTs, the proposed centre could become redundant in your PCT's eyes- for example, if it sets its sights on some glorious polyclinic.

Most third- party developers would have the same concern. While a developer may be interested in getting involved at this early stage, it would be unlikely to complete on any purchase until after it had fully satisfied itself as to the PCT's intentions.

Indeed, this would probably be after plans for the future primary care centre had been drawn up and heads of terms for future leases with GPs and other tenants were agreed.

I can see no obvious benefit at this stage of getting involved in the property.

Conversely, if your aspirations also include being a developer/investor, further and detailed investigations may be sensible.

But in the world of property speculation, there is inevitably risk - even where primary healthcare premises are involved.