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3 property investors plan £3.3B upgrade of UK's primary care facilities

Assura Plc, Primary Health Properties Plc and Octopus Healthcare, investment adviser to MedicX Fund Ltd., have committed to raise £3.30 billion of capital for upgrades to the U.K.'s primary care facilities in response to recommendations set out in a review of National Health Service-owned properties.

The group said in a position paper that their Primary Care Buildings Pledge aims to fund around 750 new primary care centers through third-party development over the next parliament.

The investment would require less than £200 million of annual rent to be set for the NHS independently, and at market rate, by a district valuer. Although the amount represents an increase on current rental spend, tenants would benefit from "improved and efficient service delivery," according to the paper.

At a time of "severely restricted" NHS capital investment, the trio, who have a combined market capitalization of over £2.7 billion, will be able to assume the risk in terms of delivery to time, delivery to budget, securing sites, and planning and maintaining buildings.

In March, Sir Robert Naylor published an independent review titled "NHS property and estates: Why the estate matters for patients," recommending a £10 billion capital investment for the delivery of "an efficient and fit-for-purpose 21st century NHS." Naylor suggested equal contributions from property disposals, Her Majesty's Treasury and the private sector.