NHS to fill black hole with £15m land sale

Published on Thursday 3 June 2010 10:06

MILLIONS of pounds worth of property is to be sold off by the health board as it seeks to reduce its £70 million black hole.

Health chiefs have identified 15 properties across the city which could raise up to 15m, including the official headquarters at Deaconess House.

It forms a key part of this year's financial plan, with the possibility of more of the 300-plus premises being sold off in future years.

NHS Lothian bosses had been reluctant to sell any buildings, however small, until the property market improved drastically, fearing they would potentially lose out on millions of pounds in depreciated value.

But the dire financial state of the health board's books – which will prompt 2,000 jobs cuts over the next two years – has forced the hand of those in charge of managing former hospitals and support buildings.

Chief operating officer James McCaffery said: "We have identified about 15 properties we will market over the next year and that will include Deaconess House."

Some buildings at the sprawling Astley Ainslie hospital in Morningside have also been emptied to make way for sale, and the same could apply at the nearby Royal Edinburgh psychiatric hospital, which itself is going through a masterplan process.

For future years, millions will be raised by selling additional parts of the Royal Edinburgh and the extremely-lucrative Sick Kids hospital at Sciennes once it has moved to Little France in 2013.

The health board's director of finance, Susan Goldsmith, described the sale of unused buildings as "key" to the financial plan and to offset dwindling funds from the Scottish Government in future.

It emerged last month that 700 positions would be axed this year, with a further 1,300 next year, and many of those will be administration and support positions.

That will free up office space, and with the striking of a deal to move admin staff to Waverley Gate premises, swathes of rooms are now surplus to requirements.

Over the years, NHS Lothian has been able to fund a range of flagship projects by selling valuable land. More than 100m was generated in the decade leading up to 2007, including 33m for the old Royal Infirmary at Lauriston.

Health chiefs are also hopeful the public spending crisis can be softened by selling property. However, vice-chairman Eddie Egan said until Holyrood distributed cash more fairly between Glasgow and Edinburgh, they would struggle and that jobs cuts could only go so far.