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Graham Copeland

Partner, Development and Valuation Consultancy

020 7312 7462
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Case Study

NHS PROPERTY SERVICES (NHSPS): is responsible for 3,700 buildings across the UK worth £3 billion. NHSPS manages some 7,000 tenants including health centres, GP surgeries, hospitals and offices.

NHSPS has a remit to improve income but the majority of these occupiers were undocumented with uncertainty around legal occupiers and areas they occupied; in addition the majority were set at below-market-rents.

We have successfully acted on behalf of a number of NHS bodies providing valuation, planning, rating and office agency advice.

  • Montagu Evans has been appointed to deliver NHSPS Lease Regularisation Programme (LRP) covering the 1st phase of 1,100 multi-occupied buildings requiring the creation of 3,500 new market leases.

    We carried out 1,100 inspections, confirmed occupiers and areas, and drafted new leases within a tight programme of 230 days. NHSPS has begun to recover lost rental income with higher chance of recovery as leases are now accurate.
  • Montagu Evans were instructed to provide a market rental rate for a large proportion of the estate to enable NHSPS to move from a cost based income stream to a market rent basis.

    Over 50% of the occupiers of the estate that NHSPS inherited are not formally documented and NHSPS are aiming to resolve this and have implemented a lease regularisation programme. Montagu Evans are assisting in this respect in relation to the multi occupied Health centres, surgeries, offices, hospitals and one or two other assets. The programme involves 3 stages with phase 1 - inspection and data capture; phase 2 - drafting and issuing Heads of Terms; phase 3 - negotiation hopefully leading to an engrossed lease.
  • Specifically relating to office agency, we have provided advice to their property services team on various disposal and acquisition projects. Following NHS reporting procedures, we have previously co-ordinated the restructure of leases held by the former London Strategic Health Authorities. This included disposing of surplus office accommodation and relocating the executive committee and personnel to a new central office in Victoria, London SW1. We continue to provide them with advice in this building.

    We have also provided office consultancy advice and undertaken a number of transactions over the past decade on behalf of Chelsea and Westminster NHS Hospital Foundation Trust.

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