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NHS Property Services Limited

NHS PS - Lease Regulation Programme

Andrew Hues

Partner, Corporate Real Estate

0207 866 8694
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NHS Property Services Limited

The challenge

  • Over 50% of the occupiers of the estate that NHS Property Services inherited in 2012 are not formally documented. The aim is to resolve this through implementing a lease regularisation programme.
  • As the estate was inherited, the leases which were documented were done so on varying terms across the country.
  • Montagu Evans are project managing the programme which occupations within the multi-occupied Health centres, surgeries, offices, hospitals and one or two other assets types.

Our solution

  • The programme involves 3 stages with phase 1 comprising property inspection and data capture stage; phase 2 - drafting and issuing Heads of Terms; phase 3 – negotiating agreement of Heads of Terms leading to an engrossed lease.  
  • Using our experience of GN60/2010 and working with our client a standardised approach has been applied to the allocation of areas within multi occupied buildings.  
  • Understanding the processes of commissioner and supplier and having regard to the implications of the Premises Cost Directions enabling us to influence our clients approach to their leasing policy. 

Results achieved

  • Over 1,650 buildings inspected and 3,000 occupations identified for which Heads of Terms have been created and issued. Negotiation and dialogue is ongoing to reach respective agreements.
  • NHS PS has benefited from a suite of accurate floor plans and an understanding of occupants and space utilisation, which provide asset managers with the tools necessary to understand their buildings.
  • This project will tease out opportunities and strategies for the individual buildings as well as the wider Estate, enabling NHS Property Services to make the right decisions for the healthcare economy.

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