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 15:43

Summary of the contracting process

The Royal Borough of Kingston upon Thames has completed a tender process for a lease arrangement titled "Hampden Road Lease". This procurement falls under the services category, specifically related to non-residential property renting or leasing services. The location of the agreement is 65 Hampden Road, Kingston Upon Thames, KT1 3HG, with the award date reflecting on 20th May 2021. The procurement method employed was a limited procedure without prior publication of a call for competition, in light of it being exempt from the Public Contracts Regulations 2015. Despite its completion status, this project highlights the council’s commitment to facilitating the development of 79 residential units alongside commercial properties through an arrangement with Legal and General Pensions Limited.

This contracting opportunity opens avenues for businesses involved in property management, construction, and ancillary services related to residential and commercial developments. Companies that specialise in property leasing, housing development, or infrastructure related to residential units would be particularly well-suited to engage in future collaboration with the Council or their partners. The potential for tenure agreements for affordable housing units further illustrates the adaptability of local firms in participating in community-focused projects, with possibilities extending to managing commercial tenancy agreements within the newly constructed properties.

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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. 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 from a third party unconnected with the Council. These works will be funded by the Landlord and neither GCL nor the Council will specify the works or oblige the Landlord to complete the works. The Council will be permitted to grant tenancy agreements on the commercial and private residential elements of the Property up to a maximum of 5 years for each residential unit and to let the Affordable Housing units for more than 5 years.

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

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). The Council has already published a Voluntary Ex Transparency Notice detailing the exempt land transaction, and this Contract Award Notice serves to confirm the position already set out in that notice. 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 are 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.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-02bf7c
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/014345-2021
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
Cancelled
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)

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