Generating over £15m for the NHS by selling a surplus site

Image showing £15.5m: generated for the NHS

£15.5m

generated for the NHS

Image showing Healthcare: repurposed for ongoing social care

Healthcare

repurposed for ongoing social care

Image showing £60,000: saved p/a in running costs

£60,000

saved p/a in running costs

Key stakeholders

Customers: Barnet Clinical Commissioning Group (CCG), London Borough of Barnet 

NHSPS teams: Transactions Management, Town Planning, Evaluation & Analytics

The challenge

Barnet CCG announced this 2.5 acre site surplus to requirements in September 2017, and the property had been vacant since 2011 since its use as neurological rehabilitation unit had ended.

NHS Property Services (NHSPS) were tasked with delivering the greatest value for the NHS, using our property expertise to maximise the site’s value and find a suitable buyer to put the site back to good use.

The solution

NHSPS teams carried out extensive due diligence to de-risk the site (including ecological, heritage and presence of reptiles and bats) before working with architects and town planners to design a residential scheme for the site.

We then undertook a series of pre-application meetings with the Local Planning Authority, securing a positive pre-planning application response from Barnet Council for 74 flats and 7 houses on the site. This significantly enhanced the value of the site, minimising the town planning risk for any prospective purchaser.

The impact

The site was sold for £15.5 million in March 2019, £7.5 million higher than the original valuation, and  surrendering liability of the site will also save the NHS £60,000 per annum in running costs. This income and savings can be directed to NHS sites that are in demand, ensuring every patient can get the care they need in the best space and place for them.

The site was sold to a private care home provider, meaning the future of the site will remain within the health and care sector. In every sale of surplus land we strive to deliver best value for the NHS - financially and socially - so this was a big win for the NHS.