Client: Barclays Bank
In recent years, the Government has encouraged private sector involvement in the development of new schools, prisons and in particular, health centres where it aims to create 500 one-stop primary care centres across the UK. The development of new health care centres are now commonly created through specialist contractor/investor joint ventures which combine construction, investment and facilities management expertise.
The PFI and Structured Project Finance Unit at Barclays Bank is a leading lender to Local Improvement Finance Trust companies (LIFTs), set up as public private partnerships for the development of such social infrastructure projects. Gerald Eve’s healthcare team advises Barclays Bank and its partners on property due diligence and valuations for secured lending purposes in this field.
Our approach
Recent instructions have included LIFTco valuations for new primary health centres on the south coast, London, the West Midlands, Yorkshire and Newcastle. Our role is to advise on the evaluation of the complex structuring and in particular the Lease Plus Agreement, which is used to determine market rental values and capitalisation yields, taking account of the expected demand from sophisticated investors for these secure long term income streams, balanced against the requirement to provide facilities management services. We draw on our knowledge of the evolving delivery of primary health solutions from our dedicated expertise in the wider health care sector.
Results
Our reports are delivered on time and in a form which meets the requirements of Barclays Bank and this assists the Bank to maintain its position as a leading lender in the sector. Our reports and valuation scenarios allow the company to test its lending decisions under a range of possible future events.
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