NHS Property Services has launched a search for a partner to manage its commercial leases events, after a decade of wrangling with tenants.
The NHS’s largest owner of real estate has around 3,300 buildings, largely in primary care.
It has struggled with a lack of leases and unpaid rents leading to soaring debt of £700m.
Last year, a scathing report from the Public Accounts Committee said the NHSPS has been “set up to fail”, and called out the organisation for the fact that 70% of its tenants did not have rental agreements.
NHSPS is now seeking a partner agent to manage headlease and sublease events, including rent and lease reviews.
It is looking for a partner to support this due to the volume and complexity of work managing the backlog, current and future caseload. The partner will also be responsible for letting vacant space.
In a Prior Information Notice for a procurement in the Official Journal of the EU, it said the existing arrangement for lease events consultancy “has been deemed unsatisfactory” and blamed the limited supplier pool from the current Ojeu frameworks.
NHSPS said headleases and subleases that fail to comply with legislation could leave the organisation exposed to legal challenge and potential unbudgeted cost.
It is seeking expressions of interest with a deadline of 9 September 2020.
Earlier this year, NHSPS chief executive Martin Steele admitted legacy lease issues had held back the organisation. “Not having a lease in place is quite a challenge. Do you force a lease or get some different type of agreement?” he said. “There are a number of parts that have got to come together to make that happen.”
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