Modern Equivalent Assets

We provide expert advice to NHS Trusts and other public sector entities to revalue thier complex and specialist estate. We lead organisations through all stages of the process from design and modelling to valuation and audit compliance.

What is a Modern Equivalent Asset (MEA)?

Construction methods and design are constantly evolving, utilising the best technology in class. A new development today, won’t be built in the same way as it was 5, 10 or 20 years ago.

Modern Equivalent Assets are a hypothetical design that provides the same functional capability as an existing. Rather than replicating the original building’s outdated design or features, the modern equivalent reflects how the same service or function would be delivered today – typically using less space, better technology, and improved energy efficiency.

Why does it matter?

  1. Better decision making
    MEAs provide a clear understanding of the true replacement cost of facilities using today’s standards, clinical delivery and technology. This ensures capital investment is based on realistic, justifiable figures, essential for building business cases, securing funding, or making estate rationalisation decisions.

  2. Financial reporting and audit compliance
    MEAs are compliant with RICS Red Book, HM Treasury guidelines, and IFRS standards, ensuring valuations are accurate, auditable, and fit for public sector reporting.

  3. Strategic planning
    Knowing the modern replacement cost of assets helps identify over-sized, outdated, or inefficient buildings and prioritise which ones to refurbish, repurpose, or dispose of. By reflecting more efficient modern layouts, MEAs highlight opportunities to reduce estate size while maintaining or improving service levels.

  4. Financial efficiency
    MEAs can produce produce recurrent, cost reduction savings through reduced public dividend capital (PDC) and depreciation charges, supporting investment in other reducing backlog maintenance, estate development or other parts of the organisation.

How we can support?

We have the expertise to support you through the process end to end, from an intial review if your estate, model development, valuation and audit compliance. If you’d be interested in understanding the level of opportunity for your organsiation, contact us today.