to establish a Joint Venture Company with the private sector. Its overall aim is to provide a more efficient estate which better supports service delivery.
The Trust owns two major assets largely surplus to requirements. These assets will be put into the JV. Private sector partner will match the value of the assets, as it is a 50:50 Joint Venture.
I mentioned above the potential role of property vehicles as part of the equipment available. We wait to hear more from the new government but I expect that these will need to be mixed in nature and operate at different geographic levels, national, regional and local. We need to be careful not to make them too complex and extensive.
There is a contradiction. We need them to be in place soon but they will take time to set up.
These vehicles cannot just be about property. They have to have delivering efficiencies at the core of their mission. I would call them efficiency vehicles or at least property efficiency vehicles. They will need critical mass, so the local partner would ideally be more than just a single local authority. More than one local authority may need to come together. Or local authorities may need to link with PCTs, the Police and others. This will create a further set of challenges in be able to work effectively across organisations.
Private sector partners will need to take a long-term view and need to be more ambitious. Success is not just about winning a building contract or simply delivering the same services as before just more cheaply. The private sector needs to take a lead role in delivering efficiencies and will need to be rewarded for achieving efficiencies. As mentioned already I also believe that central government will have to play a direct role involving, amongst other things, cash to support partnership business cases. Central government money will be critical to the Invest to Save agenda.
We have LIFT projects and Local Education Partnerships where central government is a shareholder. So we have model. But Central Government needs to become more proactive in new partnerships and needs to be flexible in how it provides financial support responding to individual business plans.
Case Study, Calderdale and Huddersfield NHS Foundation Trust
I want to share a limited example with you. This is a practical approach that could be delivered relatively quickly. It could be a route for others to follow. This Trust is currently seeking
ASSET - Liverpool-10
The first surplus to requirements asset is St Luke’s Hospital site. This area is 23 acres, there is potential for mixed use, perhaps mainly residential with some local shopping provision. It is a valuable site but less so in current market. The JV will hold the land and develop it out or sell on as appropriate and as market conditions dictate. The uplift in value over time can be captured within the JV Company.
The Acre Mill site has an area of 8 acres and is situated opposite the Huddersfield Royal Infirmary site. Acre Mill including a Listed building. The JV will take a long lease of the site. The JV will refurbish the listed building as office accommodation and this will be leased by the Trust. The new space will accommodate office uses from the Huddersfield Royal Infirmary across the road. The space freed up at the main hospital site will help with the re-modelling and improvement of clinical accommodation.
The Benefits
This is one live example of how partnership working is being developed to use property assets in a creative way to support property rationalisation, efficiency and service improvement.
The benefits for the Trust are that it can take a long-term view on value. There would be a reduced receipt if the Trust had to sell in short term. The partnership structure also gives the Trust financial flexibility. It can decide how and when to take a return. The approach also brings in new private money. This is important, as the Trust literally has no money to support property disposals or site redevelopment.
The whole approach is aimed to help the rationalisation and efficiency process. The company structure aims to give flexibility. The JV can expand and develop its role over time and support the wider health economy in Kirklees and Calderdale.
John Keyes 27
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