Church Lane Medical Centre in Lincolnshire, a successful purpose-built practice, was owned by four GP Partners who had retired and wanted to release their equity from the sale of their GP property.
When the partners retired from practising, they engaged GP Surveyors to establish a lease agreement with themselves as landlords and the remaining practising GPs as tenants.
GP Surveyors consulted both the retiring partners (landlords) and the remaining practice doctors (tenants) to determine their lease requirements. The retiring partners aimed to maintain investment value, while the incoming partners sought a lease that the NHS body would approve as value for money for financial assistance applications under the Premises Cost Directions.
Once the Heads of Terms were agreed upon and signed by all the retiring partners, they were sent to solicitors to draft the lease. The lease was then finalised and successfully passed through the NHS lease approval process. Ensuring that there would be no shortfall in rent, between the NHS’s reimbursement and the rent paid to the landlords.
Having let the practice for a year the landlords approached GP Surveyors for advice on the potential sale of Church Lane Medical Centre. The landlords met with Rebecca Reynard (GP Surveyors, Director) for a comprehensive consultation on their options.
After confirming that the current tenants did not wish to purchase the practice and discussing their situation and requirements with Rebecca, the partners decided to proceed with a straightforward sale on the open market. GP Surveyors were instructed to move forward on this basis.
GP Surveyors began marketing the surgery, creating bespoke sales literature that included a detailed investment breakdown, photographs, and floor plans of the property, along with the lease details. The sales literature for Church Lane Medical Centre was then distributed to GP Surveyors’ extensive database of over three hundred specialist primary care investors and listed on their website.
Several suitable offers were received, and Rebecca began negotiations with potential buyers to ensure the best outcome for the partners. After financially qualifying the interested parties’ final bids, Rebecca presented them to the partners, advising on which offer would be most beneficial. The partners ultimately accepted the offer from a private investor, Mr Bodalia, who owned other primary care premises. Rebecca managed the process through to completion and exchange.
Upon completion, Mr Bodalia commented:
“I worked with Rebecca recently, who was very efficient and helpful. I managed to complete my purchase transaction in record time because of the efficiency with which the team worked. I have also recently had rent valuations done, by the team. Again, an excellent experience. I would recommend the team at GP Surveyors very highly.”
GP Surveyors’ management of the sale of Church Lane Medical Centre, achieved a price that exceeded the asking price, much to the landlords’ satisfaction. The GP tenants continued to practice at the premises under the existing lease, with the assurance that the lease rent would be reimbursed by the NHS body.
GP Surveyors hope you found our Church Lane Medical Centre case study a useful resource, find out more about our Sale and Leaseback service here.
