Demand continues to be high in the primary care investment market with investors ranging from small private individuals seeking assets for their pension funds through to specialist investor developers. Specialist developers are seeking larger lot sizes with good length lease terms remaining with modern purpose built premises the main attraction. Larger institutions are interested in moving into the market subject to buildings of an appropriate lot size being available. Meanwhile individual investors are favouring smaller lot sizes which are financially more attainable, the issues they consider important being more management-based with a preference for full repairing and insuring leases.

While the demand appears buoyant there has been a shortage of stock with many of the premises available being of an older nature or, where purpose

built, the unexpired term of the occupational lease is generally between 10-15 years in length having been constructed in the late 1990’s or early 2000’s.

The fact that there is a shortage of stock and demand levels are high should indicate a strengthening of the market for assets, although the transactional evidence to date suggests little movement in yields since the beginning of the year. This is predominantly down to the quality of buildings available but also reflects finance and funding availability.

Current market conditions are providing opportunities for GPs owning their practices to realise capital through a sale and leaseback arrangement. Aitchison Raffety has considerable expertise in this field and can provide advice and assistance for the purchase or sale of primary healthcare assets.

For further information call 01727 844555.