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Investor interest in GP surgeries on the rise

Investor interest in GP surgeries on the rise

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Offers to invest in GP surgeries have more than doubled over the past year across the country.

The trend is said to be thanks to an ageing population coupled with an expected baby boom this year and slow growth in other sectors.

Andrew O’Dowd, director at GP Surveyors said: “It is evident from the dramatic increase in enquiries that we receive from investors, many who had not previously considered GP surgeries as an investment option are jumping on the bandwagon as other sectors suffer from a slow economy.

"Demand from patients for GP surgeries is on the up which only adds to the appeal of medical practices as investment opportunities.

“Until the economy and the construction market recover, we will still see few new builds taking place to help plug the gap. This means that the value placed on older surgeries is very high.”

Such potential investors are said to be individuals and organisations who are either hoping to find their first GP surgery investment or those who are looking to expand a primary care portfolio.

It is also claimed the supply of GP premises available has increased slightly due to more GPs taking the decision to sell their share in a partnership or sell and leaseback their surgery in order to release funds.

Moreover, some GPs are also deciding to retire amid the largest regorganisation of the NHS in its history.

However, despite this slight increase in the number of practices coming on the market, demand for GP premises still far exceeds supply.

“This is not enough to satisfy our growing list of primary care investors itching to buy GP surgeries,” said O’Dowd.

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Comments

If external investors are becoming interested in GP premises they clearly think there are good returns available. Finance is often still readily available from banks for GP premises so the best option in most circumstances would be to retain ownership of the premises within the practice and benefit from the returns, rather than passing these onto an external investor. Practices will also then retain control over the use of the surgery and have more flexibility going forward regarding expansion etc.

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