Backlog of NHS Estates projects may be unlocked

by Glenda Thisdell



The part privatisation of NHS Estates' £400m surplus property portfolio may unlock a backlog of building projects which otherwise would have struggled to get going.

An injection of cash up front - a figure of £200m has been suggested - and a near half share of the profits from future development projects will be used to fund NHS facilities requirements, many of which have already been identified in the NHS Plan.

Some 135 companies have expressed interest in taking a 51% share in the new commercial company which will be formed from NHS Estates' trading division; the government will retain the remaining 49% share. The company will carry on selling off the surplus property, as well as continuing with NHS Estates' trading activities, including the planning, financing, procuring and managing of all aspects of the healthcare estate. The smaller policy division which is responsible for the ProCure 21 initiative is unaffected.

NHS Estates chief executive Kate Priestley, who is responsible for ensuring the smooth transition from public sector organisation to public private partnership, will lead the new company. She said businesses that have expressed an interest include "major players" from the construction, property and facilities management industries.

NHS Estates turns over £14m yearly and has 270 staff. It is hoped that a preferred partner will be selected by autumn and the new organisation will start trading next April.