Notice Information
Notice Title
SME Housing Fund - Procurement of a Fund Manager
Notice Description
Cardiff Council is seeking to procure a FCA accredited fund manager / advisor on behalf of Cardiff Capital Region (CCR) to provide certain services and to manage the capital allocated under a 10 million GBP housing investment fund for the benefit of SME developers (developers with less than 250 employees) operating in the South East Wales region.
Lot Information
Lot 1
Cardiff Capital Region City Deal is a 1.1bn GBP economic growth programme which was agreed in 2016 between UK Government, Welsh Government and ten local authorities in South East Wales (the "Region") to bring about significant economic growth in the Region through investment, upskilling, and improved physical and digital connectivity. The CCR local authorities are: Blaenau Gwent, Bridgend, Caerphilly, Cardiff Council, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen and Vale of Glamorgan. Work undertaken to date has demonstrated to CCR that a key challenge in the Region's housing market is the requirement for vital financing support for SME developers with less than 250 employees and turnover under 50 million EURO ("SMEs") that play a valuable role in local house-building for relatively small housing schemes that fall outside of the mainstream developers' line of sight. To address this, CCR is seeking to establish an initial 10 million GBP investment sub-fund to target the substantial number of SME controlled smaller sites in the Region and provide finance support to SME developers who are unable to proceed with developments due to a lack of available funding support, particularly for the required upfront costs in the delivery cycle (the "Fund"). The term of the Fund is anticipated to be 11 years (approximately 1 year bedding in period and 10 years of investment), with the possibility of an extension by CCR for further period(s) of up to 10 years. CCR reserves the right to increase value of its investment in the Fund over this period. The principal objectives of the Fund, investment products, investment criteria, eligibility criteria and target outputs are set out in the Investment Strategy which has been issued alongside this Contract Notice. CCR is seeking to commission an FCA accredited fund manager / adviser to, amongst other matters, help market the Fund, source a pipeline of projects, undertake due diligence on applicants and manage the capital allocated under the Fund on CCR's behalf. It is intended that CCR will hold the 10 million GBP which will be loaned directly by CCR to successful applicants upon the Fund Manager's formal recommendation and that a successful applicant will make repayments on the loan to CCR directly. As CCR is not itself a corporate vehicle, Cardiff Council shall hold and manage the allocated 10 million investment; and procure and enter into a services contract for fund management services in respect of the Fund on behalf of CCR. CCR anticipates that the duration of the fund manager's services contract will align with the duration of the Fund. It is anticipated the fund manager/adviser shall perform loan origination and servicing services alongside general services and reporting services which shall include (amongst other matters): (a) advice upon and finalisation of the Investment Strategy for the Fund; (b) marketing, promoting and securing a pipeline of suitable applicants; (c) reviewing applications and conducting due diligence on a applicant's suitability for the Fund; (d) making recommendations to CCR's investment board in respect of suitable applicants; (e) ongoing monitoring, scrutiny and management of investments made and any potential or actual risks arising and how these may be managed; and (f) fulfilling the role of a FCA accredited fund manager for the Fund. The Fund Manager should also have direct access to third party advisers (in-house or otherwise) (such as valuers and professional advisers) in order to provide the full scope of services on behalf of CCR. The full scope of services is set out in Fund Manager Services Contract which has been issued alongside this Contract Notice. CCR is now inviting suitably qualified organisations to submit a response to the standard selection questionnaire (SQ) for this contract opportunity. Details of where to obtain the SQ and other documentation being released at this stage can be found in Section I of this contract notice. Additional information: Please note the estimated value at is based on the maximum 21 year duration of services. CCR previously engaged with potential suppliers via a soft market testing exercise to discuss this opportunity (see OJEU PIN reference 2020/S 103-249508). The responses confirmed that the Fund was viable, there is a need for the Fund, and the market would be interested in the opportunity.
Options: See section 11.2.7 for details
Notice Details
Publication & Lifecycle
- Open Contracting ID
- ocds-h6vhtk-02947d
- Publication Source
- Find A Tender Service
- Latest Notice
- https://www.find-tender.service.gov.uk/Notice/003349-2021
- Current Stage
- Tender
- All Stages
- Tender
Procurement Classification
- Notice Type
- Tender Notice
- Procurement Type
- Standard
- Procurement Category
- Services
- Procurement Method
- Selective
- Procurement Method Details
- Competitive procedure with negotiation
- Tender Suitability
- Not specified
- Awardee Scale
- Not specified
Common Procurement Vocabulary (CPV)
- CPV Divisions
-
- CPV Codes
66000000 - Financial and insurance services
66100000 - Banking and investment services
66140000 - Portfolio management services
Notice Value(s)
- Tender Value
- £2,500,000 £1M-£10M
- Lots Value
- Not specified
- Awards Value
- Not specified
- Contracts Value
- Not specified
Notice Dates
- Publication Date
- 19 Feb 20215 years ago
- Submission Deadline
- 22 Mar 2021Expired
- Future Notice Date
- Not specified
- Award Date
- Not specified
- Contract Period
- Not specified - Not specified
- Recurrence
- Not specified
Notice Status
- Tender Status
- Active
- Lots Status
- Active
- Awards Status
- Not Specified
- Contracts Status
- Not Specified
Buyer & Supplier
Contracting Authority (Buyer)
- Main Buyer
- Cardiff Council
- Additional Buyers
Blaenau Gwent County Borough Council
Bridgend County Borough Council
Caerphilly County Borough Council
Merthyr Tydfil County Borough Council
- Contact Name
- Available with D3 Tenders Premium →
- Contact Email
- Available with D3 Tenders Premium →
- Contact Phone
- Available with D3 Tenders Premium →
Buyer Location
- Locality
- BARRY
- Postcode
- CF10 4UW
- Postcode Area
- Cardiff
- Country
- Wales
-
- Major Region (ITL 1)
- TLL Wales
- Basic Region (ITL 2)
- TLL5 South East Wales
- Small Region (ITL 3)
- TLL52 Cardiff and Vale of Glamorgan
- Delivery Location
- TLL Wales
-
- Local Authority
- Cardiff
- Electoral Ward
- Butetown
- Westminster Constituency
- Cardiff South and Penarth
Further Information
Notice URLs
Open Contracting Data Standard (OCDS)
The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.