Cestria Health Centre Sale and Leaseback case study

GP Surveyors carry out Sale and Leaseback transaction to private investor.

Cestria Health Centre in County Durham is a purpose built medical practice which was owned and occupied by three partners, each at different stages in their career, with a varied age profile.

Existing partners of Cestria Health Centre wanted to release equity, eliminate future barriers for recruitment and make the practice more attractive to future partners. The practice instructed the services of GP Surveyors, to utilise 17 years of primary care premises experience, leverage the vast contact base of potential investors and draw upon the intimate knowledge of the sale and leaseback process.

Jonathan Dunn, Business Manager of GP surveyors was assigned to the project and managed the transaction from beginning to end. Jonathan sourced appropriate investors for the transaction, advised and negotiated suitable lease terms, heads of terms and sale price and arranged approval from NHS England.

Dr Neil O’Brien, GP Partner comments, “Practices should be under no illusion, ‘one size doesn’t fit all’.  The process of sale and leaseback isn’t quick and can take anywhere from a year to 18 months based on the individual circumstances.

GP Surveyors were integral to the transaction, helping us navigate through a complex process, liaising with appropriate authorities and industry bodies including the CCG and NHS England.”

A private investor was sourced and the 3 property owning partners remain in occupation of the surgery but without the responsibilities of ownership. The deal enabled the equity owning partners to release capital, improve operational cash flow and reduce their tax liabilities.

The provision of flexibility for retirement and ability to attract incoming partners has proven to be a success and the practice now has two new partners with five in total.

Stephen Marshall, Investor, comments,

“GP Surveyors had arranged the sale, such that when the purchase was agreed, all of the documentation was in a very advanced stage, with the appropriate authorities and industry bodies, such that exchange and completion could take place in just over 3 months from the sale being agreed. My company have previously purchased properties through GP Surveyors and all of the transactions have occurred smoothly and promptly”.

GP Surveyors hope you found our Cestria Health Centre case study insightful, see all our Sale and Leaseback case studies here.