DTZ

27 January, 2012

Richard Shield, Director at DTZ, comments on the Government's announcement that it intends to create a government-owned limited company, NHS Property Services Ltd:

“Our experience shows that some primary care trusts are already seeking to sell-off surplus land as a means of raising extra revenue at a time when healthcare budgets are increasingly under pressure due to rising demand and the need for efficiency gains.

“Time will tell how proactive and successful the new property company will be, but one of the first exercises has to be around bench-marking 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.

“As with all opportunities at present, demand from investors and developers is variable dependent upon the vagaries of the local market and the balance of risk and reward. However, the ability that the proposed property company will have to take a structured approach to rationalisation, and indeed investment, means that a wider range of options are likely to be appropriate when compared to the existing structure.”