Relocating to new, compliant, modern and sustainable premises is beneficial for patients, staff and the general community. However, for GP’s who own property, there is always the question of what to do with the property following the move. Whether there is a plan to sell, lease or redevelop the current site, you will need a strategy to ensure the transition is as smooth as possible and also one that provides for the best outcome for partners. Apollo Medical has worked on several schemes where the exit strategy is complex and challenging and we can offer professional advice on the most suitable route to protect the interests of all parties.
Why exit strategies for GP Practices are important?
It is important to understand the exit strategy as there can be legacy costs or legal issues when considering exiting current premises.
Things you should consider in your exit strategy if your current premises are
A Leased Building-
- What is the current lease term?
- What are the break provisions?
- What are the dilapidation provisions?
- What is the possible break liability for existing prior to the term ending?
An Owned Building-
- What is the current debt on the building?
- Will disposal cover the repayment of the debt?
- Is there any redemption on early repayment of the debt?
- Is there an opportunity to redevelop or gain planning permission to maximise exit values?
- What happens if the building does not sell when the new building is ready?
What do exit strategies for GP practices include?
An effective exit strategy should include:
- Financial impact
- Operational impact (telephones and utilities)
- Local Authority notification (change in address, rates)
- Physical move implications
- Patient notes (Data Protection Act)
- HSCN (N3), PSBA – strategy for transfer
- Telephones – Strategy for transfer
- Staff training – New systems and processes.
How to ensure a smooth transition into a new building.
The best way to ensure a smooth transition is to be prepared. As soon as the Outline Business case is approved you should be considering how you are going to exit your current building. Start speaking to all parties to inform them of the intentions and generate a plan that can be reviewed with the project team on a monthly basis.
How Apollo can help?
Apollo Medical has produced a move management guide that provides GP’s with a checklist of all aspects that need to be considered when moving premises.
Using our in-depth knowledge of the sector we can also advise on existing lease terms, negative equity issues, redemption penalty issues and ways to maximise value on exit to offset any property debt.
Our intention is to provide the property-owning partners with a smooth transition from current premises to new.
Got a question and want to know more? Get in touch with our primary care property experts today: https://www.apollomedical.co.uk/contact/