Award

Hampden Road Lease

THE ROYAL BOROUGH OF KINGSTON UPON THAMES

This public procurement record has 1 release in its history.

Award

23 Jun 2021 at 15:13

Summary of the contracting process

The Royal Borough of Kingston upon Thames is entering into a lease agreement for the property located at 65 Hampden Road, Kingston Upon Thames, KT1 3HG, with Legal and General Pensions Limited. This procurement falls under the classification of non-residential property renting or leasing services and is categorized as a services procurement under the Open Contracting Data Standard. The contract, which has been signed as of 20th May 2021, has a value of £58,500,000 and encompasses a lease period ranging from 20 to 40 years, during which the Council intends to sub-let to Guildhall Capital Limited. This procurement was executed through a limited procedure without prior publication of a call for competition due to its exemption under Public Contracts Regulations as an exempt land transaction.

This tender presents significant opportunities for businesses engaged in property development and management, particularly those specialising in residential and commercial construction. Firms that can provide ancillary services or expertise related to property leasing, maintenance, and management may find this a valuable contract to pursue. Given the scale of the project, including the planned construction of 79 residential units, partnerships with local suppliers and developers could facilitate access to this market segment, enabling participants to establish a foothold in public sector contracts and potentially expand their portfolios in property development.

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Notice Title

Hampden Road Lease

Notice Description

The Royal Borough of Kingston upon Thames (the Council) is entering into an agreement for lease to take a lease of 20 to 40 years of 65 Hampden Road, Kingston Upon Thames, KT1 3HG (the Property) from Legal and General Pensions Limited (the Landlord), which the Council is proposing to sub-let to Guildhall Capital Limited (GCL) or another company under control of the Council.

Lot Information

Lot 1

The Council is entering into an agreement for lease to take a lease of 20 to 40 years of the Property from the Landlord which the Council is proposing to sub-let to GCL or another company under control of the Council. GCL is a wholly owned company of the Council, The Landlord intends to construct 79 residential units, as well as commercial and ancillary areas on the Property which is being acquired by the Landlord from a third party unconnected with the Council. These works will be funded by the Landlord. The Council is not conducting a procurement process under the Public Contracts Regulations ( "PCR 2015") because the agreement for lease comprises an exempt land transaction and is not a public works contract or a public works concession contract pursuant to the Concession Contracts Regulations 2016 ("CCR 2016"). Neither the Council nor GCL are imposing legally enforceable obligations to carry out works nor have they specified requirements for the development. The original planning permission for the development was obtained prior to the involvement of GCL and the Council as potential tenants. The Council/GCL will be permitted under the lease to grant tenancy agreements on the commercial and private residential elements of the Property up to a maximum of five (5) years for each residential unit and to underlet the Affordable Housing units for more than five (5) years. The Council will have the right to purchase the Property for a nominal sum at the end of the 40 year lease. The lease, which will be a full repairing and insuring lease, will be subject to annual index linked rent reviews with any changes subject to limits as to the maximum increase.

Procurement Information

Award of a contract without prior publication of a call for competition in the Official Journal of the European Union in the cases listed below * The procurement falls outside the scope of application of the directive Explanation: This is a contract for the acquisition of a leasehold interest and rental of the Property which is exempt from the Public Contracts Regulations 2015 under Regulation 10(1)(a). For complete transparency, the Council is publishing this notice to detail the exempt land transaction and will be respecting a voluntary 10 day standstill period. The Property is being acquired by the Landlord from a third party unconnected with the Council, original planning permission for the development was obtained prior to the involvement of GCL and the Council as potential tenants and the development is being funded by the Landlord who will enter into a development agreement for the construction of the Property with a third party developer. Any works and general maintenance and management services being undertaken by the Landlord are incidental to the lease arrangements and the Council is not specifying any works, hence the agreement for lease does not constitute a public works or services contract or concession contract. The Council has not published a contract notice for the opportunity pursuant to the PCR 2015 or the Concession Contracts Regulations 2016, because the transaction detailed above does not comprise a 'public works or services contract' or a 'concession' which would require formal procurement pursuant to the UK's public procurement regime. Instead, the agreement for lease comprises a land transaction which is excluded from the scope of the procurement regime, pursuant to regulation 10(1)(a) and/or regulation 4(2)(b) of the PCR 2015 and/or regulation 10(11)(a) and/or regulation 20(4)(a) of the CCR 2016. The cumulative requirements for a public works contract is not met. Neither the Council nor GLC setting the specification for works. The works involved- construction of residential and commercial property and ancillary accommodation are being specified by the Landlord and its developer. The Council and GLC are not exercising control or decisive influence over the construction or design of the development and their role is limited to inspection rights in respect of the development, updates on progress and some limited consultation on desirable outcomes. As noted above, there is no legally enforceable obligation on the Landlord to undertake the construction. The Council's predominant purpose in this transaction is obtaining a leasehold interest via an exempt land transaction and, therefore, insofar as any works are involved (which the Council does not accept), this would be an exempt transaction in accordance with regulation 4 of the PCR 2015 and/or regulation 20 of the CCR 2016. The Council may therefore enter into the agreement for lease without prior publication of a Contract Notice. Whilst not legally required to publish this notice, the Council has taken the step in the interests of giving full transparency to the agreement for lease which as results from the private sector development of the site and will be voluntarily respecting a 10 day standstill period following the publication of this notice before entering into the above mentioned transaction.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-02bf72
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/014335-2021
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Limited
Procurement Method Details
Award procedure without prior publication of a call for competition
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

70 - Real estate services


CPV Codes

70220000 - Non-residential property renting or leasing services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£58,500,000 £10M-£100M

Notice Dates

Publication Date
23 Jun 20214 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
19 May 20214 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Not Specified
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
THE ROYAL BOROUGH OF KINGSTON UPON THAMES
Contact Name
Mr Bola James
Contact Email
bola.james@kingston.gov.uk
Contact Phone
+44 2085475000

Buyer Location

Locality
KINGSTON UPON THAMES
Postcode
KT1 1EU
Post Town
Kingston upon Thames
Country
England

Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI6 Outer London - South
Small Region (ITL 3)
TLI63 Merton, Kingston upon Thames and Sutton
Delivery Location
Not specified

Local Authority
Kingston upon Thames
Electoral Ward
Kingston Town
Westminster Constituency
Kingston and Surbiton

Supplier Information

Number of Suppliers
1
Supplier Name

LEGAL AND GENERAL PENSIONS

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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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.

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