DTZ Investors has closed a £59.1 million (€68.6 million) off-market deal to acquire two private hospitals operated by Ramsay Health Care UK, Oaklands Hospital in Salford and Duchy Hospital in Truro, from LondonMetric.Cushman & Wakefield advised DTZ Investors on the transaction, while CBRE acted for LondonMetric.

The deal was part of a wider seven-asset disposal by LondonMetric, which the property group confirmed priced the package at a net initial yield of 5.3 percent, in line with its March 2026 book values.

Oaklands Hospital sits on Lancaster Road in Salford, adjacent to Salford Royal Hospital, while Duchy Hospital sits on Penventinnie Lane in Truro, near Royal Cornwall Hospital. Both facilities operate three theatres and full diagnostic and treatment capabilities across a range of specialisms, with Ramsay having previously invested capital in each building to support rising patient demand.

Both hospitals are leased to Ramsay's UK operating business until 2037, representing a weighted average unexpired term of approximately 11 years at the time of sale, with fixed annual rent uplifts of 2.75 percent. The leases carry a parent company guarantee from Ramsay Health Care's Australian parent, which holds an investment-grade rating from Fitch Ratings. Ramsay is one of the UK's top five private hospital operators, holding approximately 10 percent market share.

"These private hospitals add diversification to our portfolios and are underwritten by limited local competition with robust demand to support an already successful and leading private hospital provider," said Ben Haller, director at DTZ Investors.

The structural driver behind the deal is sustained investor appetite for healthcare real estate carrying long, fixed-uplift leases and investment-grade guarantees, as NHS waiting list pressure supports demand for private hospital capacity near major public facilities. For LondonMetric, the sale forms part of a broader portfolio recycling programme that saw the group sell 57 assets for £318.1 million during its 2026 financial year at a blended net initial yield of 5.8 percent.

For the sector, the transaction confirms that long-income healthcare real estate continues to price in the mid-5 percent yield range as investors compete for scarce, well-let hospital assets.

Source: capdex.com / investegate.co.uk