8.31 The land should be revalued to Open Market Value when it becomes surplus. The Board should verify that the guaranteed minimum price in the deal is at least OMV for alternative use. Where a reduction in future payments forms the sales proceeds, the net present value (NPV) of the reduction must be at least equal to the OMV of the asset. The NPV should be calculated by using a 3.5% real discount rate.
8.32 If a consortium's discount rate is higher than 3.5%, then their internal assessment of the economic value to the NHS may be lower than that of the NHS. Meeting the 3.5% value for money threshold is therefore the minimum acceptable standard, and NHS Bodies should seek to better this threshold wherever possible. As a matter of course, NHS Bodies should seek professional advice to assess whether the benefit of including the land in the participant's financial model is actually reducing the unitary payment by the amount required.
8.33 The land should be revalued at OMV for alternative use when it becomes surplus in accordance with the Capital Accounting Manual.
8.34 The treatment of a downward revaluation due to properties identified as surplus should be treated in accordance with the accounting guidance detailed in the NHS Scotland Capital Accounting Manual.