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King Sturge

WEST HEALTHCARE PROPERTIES WILL FLOURISH

The West can expect to see considerable investment in new GP surgeries, dental clinics and hospitals, according to the region‘s largest firm of international property consultants.
 
At a time when market economics are stifling development of new homes and workspace (offices and industrial properties), regional investment in healthcare properties is on the increase, according to James Hanson, a partner and head of healthcare at King Sturge in Bristol.
 
“Some 80 per cent of the West‘s primary care properties are now below the recommended size, while many facilities fall short of the Care Quality Commission‘s standards,” said Mr Hanson.
 
“This will drive the appetite of developers, investors and lending institutions, at a time when healthcare property is one of the few games in town, and as a result our region will benefit from new care homes, GP surgeries, dental practices and private hospitals.”
 
While accepting that no sector, including healthcare, is immune from the property recession, Mr Hanson told King Sturge‘s annual Bristol media briefing that healthcare was the frontrunner.
 
“Alongside proposals for the re-development or consolidation/relocation of GP surgeries, including the new concept of poly-clinics, we are also seeing a good demand from private hospital operators to identify new locations in the West.
 
“This coincides with the need for the NHS to make greater use of the private sector in meeting its ever-growing demand for efficient, high quality, value for money services.
 
“Since 1997, when Labour came to power, official statistics reveal that NHS spending has risen from around £37 billion to around £110 billion, but that NHS productivity has fallen by 4 per cent. During that same period, efficiency in the private healthcare sector has increased by 26 per cent.
 
“At a pre-election time when all major parties are struggling with their spending plans for the NHS, the property market has already identified GP and dental partnerships as potential ‘winners‘, alongside the private sector providers of care and hospital services.
 
“Healthcare and care of the aged are sectors in which the South West is one of the UK‘s market leaders and the evidence is clear, with private hospital providers such as Circle looking to develop new locations in the West in addition to its new private hospital on the outskirts of Bath, which is due to open next month. Also, Spire Healthcare is investing £10.5 million in expanding its Bristol hospital, now identified as Britain‘s first private hospital for NHS ‘choose & book‘ heart surgery.
 
“Assuming that our region can continue to provide suitable sites and opportunities that are economically viable and supportable, we have a very real prospect of delivering health services which will be the envy of the rest of the country.”
 
ENDS               27th January 2010
 
For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.
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