The NHS has awarded a multi-million-pound contract to a panel of agents to help slash costs across its UK real estate.
The four-year contract, valued at around £1.3m pa, is the result of a competitive tender, and is expected to lead to the disposal of swathes of surplus property.
Gerald Eve was among the seven agents appointed to rationalise property occupied by the UK’s 450 NHS trusts. Also included were Lambert Smith Hampton, Drivers Jonas Deloitte, GVA, Capita Symonds and BNP Parisbas Real Estate.
Of the agents appointed to the NHS Shared Business Services Framework most were awarded work across all 10 areas of the trusts’ real estate needs, including acquisition and disposal of freehold and leasehold property, rent reviews, lease breaks, expiries and renewals. They will also provide advice on dilapidations, rating and valuations.
Gerald Eve partner Mike Roocroft who is leading the project for Gerald Eve said: “The NHS is undergoing an intensive cost-cutting programme, aiming to deliver £15bn-£20bn in efficiency savings over the next four years. Cutting the £35bn health estate by 20% over the next 10 years could reduce running costs by £1bn pa.”
It is understood better utilisation alone could reduce occupied space from 270m sq ft to 242m sq ft, saving £500m per year.