Greater Manchester Pension Fund announced last week they would be partnering with BlackRock to invest £1bn in NHS property.
The move comes as the UK Government seeks private finance to help repair and refurbish the country’s ageing healthcare buildings.
The American investment firm is one of the world’s largest asset managers and already owns 65 NHS GP surgeries, having invested as a landlord for 20 years.
Private finance initiatives (PFIs) in the NHS had been scrapped by the Conservative Government in 2018, which said they provided poor value for taxpayers.
Bolton and District Pensioners Association (BDPA) has raised the alarm, saying that PFIs had caused damage by locking the NHS into costly long-term deals.
Alan Johnson, chair of the BDPA, said: “People remember the damage caused by PFI, where the NHS was locked into costly long-term deals.
“This new model may look different, but it still risks turning our NHS buildings into profit streams for global finance.
“The NHS may still be free at the point of use, but behind the scenes, more and more public money is being diverted into private hands.”
The association said that they are “particularly concerned” that public assets “could be sold off and leased back”.
Bernadette Gallagher, secretary of the BDPA, said: “Our pensions should be used to strengthen public services, not to undermine them.
“NHS buildings should belong to the public – not global investment firms.”
Last month, the BDPA launched a campaign against what they said was “privatisation of the NHS by stealth”.
They have warned that increased use of private providers drives up costs through contracts, administration, and profit-taking.
Eleanor Wills, chair of Greater Manchester Pension Fund, said: “Greater Manchester Pension Fund is a long-term investor, committed to deploying capital in ways that secure income to pay our members’ pensions and support essential UK infrastructure.
“Primary care is a vital part of our communities, yet much of the estate is ageing and no longer fit for the needs of modern healthcare delivery.
“This partnership allows us to back high-quality, purpose-built facilities that directly align with the NHS Long Term Plan, improve patient experience, and provide stable, inflation-linked returns over decades with strong potential for growth.
“We are proud to invest in assets that strengthen public services while safeguarding the financial future of our members.”
John Benham, head of UK open-ended funds at BlackRock, added: “We are incredibly excited to enter the next chapter as we partner with GMPF to accelerate the availability of private capital for these essential assets. Together with GMPF, we are bringing our deep knowledge of unique public-private sector dynamics to unlock one of the largest private market opportunities for capital to invest in the social infrastructure underpinning UK primary care.”
Lord Stockwood, UK minister for investment, said: “The UK is a thriving business hub. With this new joint venture, Greater Manchester Pension Fund’s £150m cornerstone investment into our country’s healthcare real estate will help boost provision and accessibility for hundreds of thousands of patients in local communities.
“With financial services identified as a key sector in our modern industrial strategy, we’re encouraging greater investment from UK pension schemes into critical infrastructure projects at the heart of our communities.”
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