Finance

Lunn Healthcare Facilities Limited is a specialist Developer of Medical Properties within the Jack Lunn Group of Companies, who have been established for over 50 years. We are a well-known regional organisation with wide experience in procurement of projects under diverse arrangements in a variety of sectors.

We fully understand the principles of risk transfer and value for money through current PFI experience. We have created and retain a substantial mixed property investment portfolio within our Group. We currently own and manage eight complete Medical Centres in the Yorkshire Region with three further Medical projects under construction. Lunn Healthcare Facilities provide a long-term investment which is substantially funded by Commercial mortgage and banking facilities available to the Jack Lunn Group.

The rented option means that our developer led projects mean little or no financial responsibility for the tenant. From the start, we produce a detailed financial appraisal of a project, and we submit this to the District Valuer to negotiate notional rent. There is no need for our tenants to worry about raising capital, paying interest or providing funding. We can also help by providing lease financing advice.

It is clear that Department of Health guidance favours developer-led schemes where there is no financial risk to Practices as opposed to the previous trend of owner-occupied premises with their incumbent risk of negative equity and financial insecurity. If a partner in the practice leaves or retires, other partners incur no residual liabilities. Typical leases are for twenty years with rent reviews at three year intervals to open market value but not to exceed district values valuation.

Our usual strategy for undertaking Healthcare projects is as follows:
1) Meet all development costs and fees relating to the project (including initial feasibility studies
and plans) at no cost to the practice.
2) Take on development and investment risk
3) Obtain Planning and Building Consents
4) Work in partnership with Primary Care Group and Doctors to negotiate notional rent with
District Valuer for the appropriate medical areas (GMS)
5) Negotiate terms with complementary Practitioners and service providers who may be interested
in Leasing accommodation within a Medical Centre (if appropriate)
6) It is our policy to retain completed medical centres for long term investment.