About the programme

Community foundation trusts - proposed estate acquisitions

All aspirant community foundation trusts (CFTs) are to be given the opportunity to acquire the PCT owned estate required to support the delivery of services for which they have  responsibility.

The nature of the PCTs' estate is diverse, including for example; freeholds, leaseholds and licences. The extent of the legal interest, which can be offered, will therefore vary and will need to be the subject of discussion with the PCT on a case-by-case basis. It should be noted that  PFI and LIFT interests are excluded for the time being from this process.

All acquisitions of freehold interests or capitalised leasehold interests will be financed by public dividend capital. They will be subject to an overage provision, which will provide that 50% of any profit made on the future disposal of the asset will be payable to the Secretary of State for Health. There will also be provision for the Secretary of State  or a body nominated by him to be allowed to buy back the asset, in the event that the trust is no longer to provide the services.

All transfers of legal interests agreed by the PCT will be subject to approval by the strategic health authorities. Approval will only be granted where they are taking all of the property interests associated with the services transferring to them. Full guidance relating to the approval process will be available shortly. This is an extension of the assurance and approvals process for PCT community services.  

Aspirant CFTs and their PCTs should immediately commence the process of identifying and agreeing the estate which will be made available to CFTs, in order to ensure completion by 1 April 2011 (or by the date of NHS trust establishment if later than 1 April 2011).