BlackRock is partnering with the Greater Manchester Pension Fund to invest £1bn in NHS property, addressing the UK's aging healthcare infrastructure. The asset manager will contribute 65 NHS GP surgeries to a joint portfolio, while GMPF adds £150mn. They plan to build a £1bn portfolio over five years, including new clinics and refurbished facilities many not upgraded since the 1970s.

The NHS estate attracts investors with long-term inflation-linked returns underwritten by the government, which reimburses GPs for surgery rentals. This deal follows the government's push for private finance to refurbish healthcare buildings and its aim to establish 200 neighborhood health centers by 2035. Campaigners worry about increasing private sector involvement in the NHS.

The partnership comes as chancellor Rachel Reeves forces pension funds to invest in UK infrastructure, aiming to unlock £50bn by 2030. Healthcare real estate investment volumes surged last year, with US investors showing strong appetite. Yields on these investments range from 5 to 7 percent, making them attractive to institutional investors seeking stable returns.