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Investor offers in practices doubled in 12 months

9 January 2013

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Investor interest in GP surgeries has more than doubled over the past year nationwide.

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.