Services > Pharmacy Rent reviews

Asset Management

Asset management and investment services are generally provided to landlords and are services that ‘add value’ to their properties and portfolio. The two main aspects of asset management we can assist with are lease re-gears and development to premises.

Lease re-gears

These are effectively agreeing changes to an existing lease to add value to the property as lease terms are key to the value of the property. Examples include the following:

  • Surrender of existing lease and grant of a new lease – The value attached to a lease which is drawing towards the end of it’s “term” can be lower certainly than when compared with a lease which has a long “unexpired term” of years. Therefore, where it is possible to agree terms for a new lease to effectively replace or continue on from an existing lease which is nearing it’s end, can add considerable value to the property and provide the landlord with more certainty for the future.
  • Removal of a tenant’s break clause – Tenant’s break clauses allow a tenant to end the lease and vacate a property during the term of the lease. Having the risk of a break clause affects value and agreeing to remove the break clause should enhance the value of the property/investment.

Both the above examples require the agreement of the tenant as well as the NHS (when it comes to NHS approved GP surgery leases). It is very unlikely that a tenant would agree to the above transactions without some incentive from the landlord. This may include carrying out improvements to the surgery and/or a rent-free period as well as potentially paying the tenant’s costs in the matter.

Development to premises

This is primarily improvements and/or extensions to surgery premises which should result in increased rent (and NHS rent reimbursement) derived from the property:

  • Improvements – we can advise landlords of improvements to the surgery that will likely increase the rent. In dated properties this will generally include improvement to accessibility e.g. (installation of automated doors, a dual height reception counter and a passenger lift) and infection control (e.g. new infection control floor coverings and modern compliant wall mounted sink units etc.). Other improvements could be to enhance the sustainability of the building e.g. by replacing old lighting installations with energy efficient LED lighting.
  • Extensions – where a practice needs additional space and there is space to extend – we can help! When acting for a landlord the process will involve agreeing with the tenant what additional space the tenant requires and then seeking prior approval from the NHS to the proposed extension. Where the property is leased, this will also involve agreeing terms for a lease of the extension which will also require NHS approval.

Under the scenarios above we can advise on values, guide clients through the process and negotiate appropriate commercial terms and rents and of course agree the appropriate reimbursement levels with the NHS and District Valuer. Other services would also be required including planning consultants, specialist PID writers, project management and builders.

If you are a landlord of primary care real estate, get in touch today and we can discuss how our specialist general practice surveyors can help you maximise the value of your portfolio.

Why choose us?

1 Highly Regarded

We can boast some of the biggest primary care providers and investors in the UK as clients and we have helped and supported PCNs, GP federations and LMCs all over the UK.

2 Highly Experienced

We currently act on behalf of one of the largest healthcare property investors in the UK in assisting with complex asset management negotiations with GP tenants and occupiers.

3 Highly Professional

All our Chartered Surveyors and RICS registered valuers are specialist primary care surveyors and members of the RICS which means they are fully qualified and regulated by the Royal Institution of Chartered Surveyors.

CLIENT TESTIMONIALS

Sue Pyatt

Excellent service throughout, constant updates and feedback from yourselves.

Sue Pyatt, Practice Manager

Francis Mulhern

They were extremely easy to deal with, informative, focussed and efficient.

Francis Mulhern, Bretton Medical Practice Peterborough

Adnan Mohammad

Efficient company that that has a competitive fee and get the job done.

Dr Adnan Mohammad, GP Partner, Newsome Surgery, Yorkshire

Jill Foster

BW Healthcare has that special personal touch.

Jill Foster, Practice Manager, Beacon Primary Care, Lancashire

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