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Author Topic: Meet PropCo who are set to oversee a GBP5.2bn sell off of NHS land  (Read 3004 times)

roger

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Meet PropCo who are set to oversee a GBP5.2bn sell off of NHS land

by Dr Éoin Clarke (PhD)

NHS Property Services, is a brand new property company set up by Andrew Lansley, and it will very soon have assets of £5,200,000,000. PropCo as it is otherwise known is now listed at Companies House as a standalone company. It is confiscating all surplus NHS land throughout England and pooling it into one stand alone company- itself. It will receive no funding from the Department of Health and is expected to generate its own income by selling land, NHS land. Its property portfolio is due to expand quite rapidly in the coming years as it confiscates NHS land especially from PCTs that fail to convert to Foundation Trusts. Already, 591 hectares of NHS land is up for sale to private developers but this is expected to increase sharply. All Primary Care Trusts which are due to be abolished are now legally required to hand over their (non-clinical) surplus land to PropCo. The company will employ 2,500 staff and 22 of its employers will have income of £100,000 or above. The Tories have not ruled out selling PropCo to private investors. As it stands it is the largest sell off of NHS land in the history of the state. Going forward, it is set to be the largest one off private sector takeover of the NHS since its formation. It is the equivalent of 10 large hospitals and the portfolio's value is the equivalent of nearly 5% of the NHS's annual budget.



If, and when, PropCo is sold to private investors it will represent one of the largest ever sell offs of government land. In future the Clinical Commissioning Groups, if they wish to expand NHS services, will no longer be able to use the surplus land currently available. Instead, they will have to source land from private developers at commercial rates. Needless to say, private investors are rubbing their hands with glee at this double bonanza. Not only is some private construction company about to end up very rich indeed (pending the successful acquisition of PropCo) but equally property developers have now gained a valuable new customer in the NHS who will have to trade commercially for any new expansions they wish to make. Needless to say if CCGs are required to source land privately it will push their costs up, thus leaving less money to actually treat patients. I should point out that property investors are now the number 1 donors to the Tory Party.
 
 
« Last Edit: June 16, 2012, 10:58:59 am by roger »
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roger

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Lansley confirms launch of PCT estate PropCo  

Source Health Investor
Journal for the Private Equity indiustry in the NHS

Health secretary Andrew Lansley has confirmed the launch of a government-owned limited company that will own and run the primary care trust (PCT) estate.
 
In a written statement to parliament, Lansley revealed that NHS Property Services Ltd “will take ownership of and manage that part of the existing PCT estate that will not transfer to National Health Service community care providers under the plans for healthcare reform set out in the Health & Social Care Bill”.

The firm was registered at Companies House on 20 December with the Department of Health’s (DH) commercial director Peter Coates and DH official Benjamin Masterson listed as the firm’s two directors.
 
Details around the venture are still limited, but there is now at least an answer to the question of who will manage the primary care estate after PCTs are phased out of existence – a matter of vital importance to numerous elements of the primary care property sector.  
 
The new company is expected to take over assets owned by PCTs, such as offices and health centres, community hospitals and clinics. In his statement, Lansley confirmed that the company “would hold property for use by community and primary care services, including for use by social enterprises; deliver value for money property services; cut costs of administering the estate by consolidating the management of over 150 estates; deliver and develop cost-effective property solutions for community health services; and dispose of property surplus to NHS requirements”.
 
Karen Prosser, head of health sector at property advisors EC Harris, gave the news a cautious welcome. “The idea of having one body to oversee management of the element of the former PCT estate where clinical services are not performed in is a good idea which, in theory, should enable the public sector to maximise the efficiency around management costs as well as the value it could achieve should it dispose of assets,” she said.
 
“The concerns are that there could be a delay whilst the company is being set up, and the potential for undue bureaucracy.”
 
Richard Shield,  a director at property firm  DTZ, part of UGL Services, said: “Time will tell how proactive and successful the new property company will be  but one of the first exercises has to be around benchmarking to properly assess the realistic scope for making savings across the board.
 
“Undoubtedly from an operational perspective there is certainly scope for savings as further rationalisation can be achieved as management contracts come up for renewal.”

Posted on: 30/01/2012


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