We have recently arranged, and are still arranging, terms for a number of Trusts and Local Authorities to release capital by arranging for institutional investors to buy property for a fixed term, enjoy a modest but guaranteed return during that term and then pass back the property at the end of the term for a nominal amount.
The investment rating of the tenant is the key determining factor for investors, with NHS Trusts being classed as Investment Grade status. This is the best status available with the investor being of the opinion that it is buying a Gilt Edged Security.
Whilst some institutional investors have a slightly different view of Foundation Trusts, a large number don’t meaning there is still a highly competitive market where yields are compressed and values increased.
If you have an immediate or future requirement to release capital, USL are uniquely positioned in the market to offer an end to end service where we identify the appropriate property, put in place paperwork to meet your governance requirements, ensure alignment with your strategic objectives and hold a funding competition to choose an investor who is able to offer a value for money proposition to your Trust.
This type of investment is currently enabling a growing number of public sector organisations to meet their strategic objectives by providing them with a capital receipt aligned to their needs and repaid through savings achieved or additional income generated, whilst allowing surplus savings or income to significantly contribute to their cost improvement programmes.