GMPF teams up with BlackRock in health property JV
Greater Manchester Pension Fund has launched a joint venture with the global investment giant, targeting an initial £1bn portfolio of NHS-leased real estate assets.
The partnership – which brings together the country’s largest local government pension scheme with its largest asset manager – will mobilise private capital to invest in purpose-built primary care centres across England, Scotland and Wales
The investment world continues to see primary care as critically under-invested, with around 20% of local GP buildings in England pre-dating the foundation of the NHS in 1948.
Last year saw a drawn-out bidding war that culminated in the sale of North West-headquartered primary care property business Assura for £1,8bn to Primary Health Properties, which had headed off a bid from KKR and Stonepeak. BlackRock is a PHP investor.
GMPF will make an initial cornerstone investment of £150m.
The JV will seek to mobilise third-party capital to invest in acquiring, upgrading, expanding and developing primary healthcare centres providing frontline GP and other NHS services in local communities.
Launching with a seed portfolio of 65 modern, purpose-built primary care assets serving more than 700,000 patients across England, Scotland and Wales, the JV is initially targeting up to a £1bn portfolio of high-quality healthcare facilities by the end of 2030.
With a much longer-term investment horizon, the partnership aims to expand capacity and improve access to GP services in local communities over the coming decades.
Cllr Eleanor Wills said GMPF is proud to invest in the new vehicle. Credit: Tameside Council
Cllr Eleanor Wills, Chair of Greater Manchester Pension Fund, said: “Greater Manchester Pension Fund is a long-term investor, committed to deploying capital in ways that secure income to pay our members’ pensions and support essential UK infrastructure. Primary care is a vital part of our communities, yet much of the estate is ageing and no longer fit for the needs of modern healthcare delivery.
“This partnership allows us to back high-quality, purpose-built facilities that directly align with the NHS Long Term Plan, improve patient experience, and provide stable, inflation-linked returns over decades with strong potential for growth. We are proud to invest in assets that strengthen public services while safeguarding the financial future of our members.”
John Benham, head of UK open-ended funds at BlackRock, said: “For more than two decades, BlackRock has been a major investor in primary care assets on the frontline of healthcare provision in the UK on behalf of our clients.
“Today, we are incredibly excited to enter the next chapter as we partner with GMPF to accelerate the availability of private capital for these essential assets. Together with GMPF, we are bringing our deep knowledge of unique public-private sector dynamics to unlock one of the largest private markets opportunities for capital to invest in the social infrastructure underpinning UK primary care.”
Greater Manchester Pension Fund is the largest local government pension scheme in the UK, with assets exceeding £34bn and a membership of over 430,000 individuals.
UK minister for investment Lord Stockwood said: “With this new joint venture, Greater Manchester Pension Fund’s £150m cornerstone investment into our country’s healthcare real estate will help boost provision and accessibility for hundreds of thousands of patients in local communities.”
