DTZ Investors Acquires Two Ramsay Private Hospitals for £59.1M in Off-Market Deal

DTZ Investors has closed a £59.1 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 London Metric. Cushman & Wakefield advised DTZ Investors on the transaction, while CBRE acted for London Metric.

The deal adds two fully occupied, single-tenant healthcare assets to DTZ Investors' portfolio, underwritten by leases running to 2037 and guaranteed by Ramsay's Australian parent company, which carries an investment-grade credit rating from Fitch Ratings.

Asset Detail: Salford and Truro Hospitals

Oaklands Hospital is located at 19 Lancaster Road in Salford, Greater Manchester, adjacent to Salford Royal Hospital. Duchy Hospital sits on Penventinnie Lane in Truro, Cornwall, near Royal Cornwall Hospital. Both facilities feature three operating theatres and full diagnostic and treatment capabilities across a range of medical specialisms. Ramsay has made capital investment in both buildings to support rising patient demand, and each asset carries potential for further expansion.

The proximity of both hospitals to major NHS facilities is central to the investment thesis, providing sustained access to consultants and long-term patient demand. Ramsay Health Care is one of the UK's top five private hospital operators, holding approximately 10% market share.

Lease Structure and Income Profile

Both hospitals are leased to Ramsay's UK operating business until 2037, representing a weighted average unexpired lease term of approximately 11 years at the time of sale. Rents are subject to fixed annual uplifts of 2.75%, providing predictable income growth over the lease term. The leases carry a parent company guarantee from Ramsay Health Care's Australian parent, rated investment grade by Fitch.

The transaction was part of a broader seven-asset disposal by London Metric, which priced the package at a net initial yield of 5.3%, broadly in line with March 2026 book values. UK private hospital yields have been benchmarked in the mid-5% range by sector participants, placing this transaction within prevailing market pricing for long-income healthcare assets.

DTZ Investors' Strategic Rationale

Ben Haller, Director at DTZ Investors, said the firm continues to direct capital toward essential real estate strategies where long-term demographic trends support sustainable income and income growth. "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," Haller said.

The acquisition reflects broader investor appetite for healthcare real estate backed by NHS waiting list pressures and fixed-uplift lease structures. For London Metric, the disposal represents a recycling of capital within its wider portfolio, which reported £318.1 million in asset sales across 57 assets during its fiscal year 2026 at a blended net initial yield of 5.8%.

Advisers

Cushman & Wakefield advised DTZ Investors on the acquisition. CBRE represented London Metric in the transaction.

Sources

• DTZ Investors — Deal Announcement