Buckinghamshire, Oxfordshire and Berkshire West ICB has pulled out of a planned GP surgery development at Great Western Park, Didcot, terminating a deal with investor Assura after recent cost and reimbursement proposals were judged not to represent value for money under the NHS Premises Costs Directions 2024; the decision echoes similar failures to progress new hubs in growing Oxfordshire towns. The article attributes the breakdown to rising construction and input costs that have pushed build and future-rent estimates beyond thresholds set by NHS England and the district valuer, exposing tensions in the common REIT-funded model where private investors expect returns via rent and maintenance contracts. The ICB says it is seeking alternative development partners, but with central government recently directing about £100m toward upgrading existing GP estates (and committing over £1bn to GP contracts for staffing) rather than underwriting new-builds, the story underscores funding and viability risks for private-backed primary-care real estate and a constrained pipeline for new GP capacity.
Buckinghamshire, Oxfordshire and Berkshire West Integrated Care Board (BOB ICB) has terminated its development agreement with Assura for a planned GP surgery at Great Western Park in Didcot after recent cost and reimbursement proposals were judged not to “represent value for money” under the Premises Costs Directions 2024. The decision mirrors prior failures to progress new GP hubs in other growing Oxfordshire towns such as Bicester, indicating this is a pattern rather than an isolated cancellation. The article attributes the breakdown to rising initial construction and input costs—typical GP surgery builds range from £500,000 to £1m—which have pushed projected build costs and future rent beyond NHS England and district valuer thresholds. The common financing model uses private investment via REITs that receive rent and maintenance contracts; Assura has previously developed Didcot Health Centre and Wantage Health Centre but encountered an unfavorable reassessment here. Policy and funding signals favor upgrading existing estates over underwriting new builds: the Department of Health and Social Care directed roughly £100m this year to GP estate upgrades and has committed over £1bn to GP contracts for staffing, rather than financing greenfield surgeries. For investors and developers this raises execution and underwriting risk for REIT-backed primary-care projects, increases the importance of contract certainty and valuation alignment with ICB/district valuer criteria, and suggests a slower pipeline for new primary-care real estate unless scope or funding arrangements change.
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