Notice Information
Notice Title
Queen Alexandra Hospital, North Car Park, MSCP
Notice Description
Portsmouth Hospitals University NHS Trust ("PHUT") intends to enter into a series of leasing arrangements with Noviniti Dev Co 6 Ltd ("Noviniti") and Engie Services Limited ("Engie") in respect of a new multi-storey car park development ("the Development") at Queen Alexandra Hospital, Portsmouth ("the Hospital") with Engie as Noviniti's initial tenant and the car park operator. The contractual arrangements are structured as a land transaction exempt from the Public Contracts Regulations 2015 (PCR) and the Concession Contracts Regulations 2015 (CCR). There is a Deed of Covenant ("the Deed") between the Trust and Engie requiring Engie to operate the car park. Noviniti has drawn down a 35-year ground lease of the site in exercise of an option agreement with the PHUT.
Lot Information
Lot 1
PHUT now intends to enter into a tripartite Agreement for Underlease with Noviniti and Engie. In this agreement Engie commits to accepting the grant of an 18-year underlease (with rent obligations to Noviniti) on practical completion of the car park. PHUT (as head landlord) will have insurance obligations owed to Engie and a repairing covenant for the car park. PHUT will be required to step-in to take the underlease if Engie fails to enter the underlease at practical completion. PHUT will also be required to enter an Overriding Lease (to become Engie's landlord) if Engie becomes insolvent or defaults on its Underlease in order to maintain the rental payments to Noviniti. PHUT will enter a 12-year Reversionary Lease (with rent obligations to Noviniti) to take effect from the expiry of Engie's underlease. Additional information: Please see Voluntary Transparency Notice of 23.2.2021 for details of option agreement and ground lease https://www.find-tender.service.gov.uk/Notice/003619-2021
Procurement Information
PHUT considers that the arrangements fall within the land exemption under Regulation 10(1)(a) Public Contracts Regulations 2015 and/or Regulation 10(11)(a) Concessions Contracts Regulations 2015. The Ground Lease can only be drawn down by Noviniti when there is an acceptable planning permission secured. As the planning application is an agreed document under the option agreement (and which will also define the permitted alterations under the Licence for Alterations) the Trust has had input in determining the details of the Development to be delivered on the site. The Ground Lease is subject to break clauses in favour of PHUT after 2 years (to enable PHUT to recover the site if the Development is not commenced) and again at 30th anniversary of practical completion of the Development. On execution of the Ground Lease Noviniti is not obliged to undertake the Development. Once Noviniti has served notice in electing to carry out the Development then this will engage enforceable obligations for Noviniti to carry out and complete the development for PHUT under the terms of the tripartite Agreement for Lease and also the Licence for Alterations granted by PHUT to Noviniti. However, as Noviniti is under no obligation to serve notice to elect to carry out the works PHUT considers that no public works contract arises for lack of an enforceable obligation and Noviniti is able to "walk away" from having to deliver the Development. Under a Deed of Covenant between PHUT and Engie, Engie have obligations to open the car park for 24 hours per day every day for each year of the contractual term; apply and collect tariffs and enforcement charges; and apply the car parking policy specified by PHUT. PHUT will secure an annual income relating to the amount by which the rental receipts from the car park operator exceed the total of rental payments to Noviniti under the terms of the underlease, Engie's operator amount (covering costs and an operator margin) and Engie's gainshare amount. If there is a shortfall in the annual income collected to meet yearly rent due from Engle to Noviniti then PHUT would pay Engie an amount equal to the shortfall value. The contractual term is co-terminus with the 18 year underlease from Noviniti to Engie. PHUT considers that if the Deed of Covenant is a services concession contract to operate a car park then its estimated value to Engie over the contractual term would be below the CCR threshold and therefore the CCR would not apply to the Deed.
Notice Details
Publication & Lifecycle
- Open Contracting ID
- ocds-h6vhtk-02c113
- Publication Source
- Find A Tender Service
- Latest Notice
- https://www.find-tender.service.gov.uk/Notice/014752-2021
- Current Stage
- Award
- All Stages
- Award
Procurement Classification
- Notice Type
- Award Notice
- Procurement Type
- Standard
- Procurement Category
- Works
- 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
45 - Construction work
98 - Other community, social and personal services
-
- CPV Codes
45000000 - Construction work
45213312 - Car park building construction work
98351000 - Car park management services
Notice Value(s)
- Tender Value
- Not specified
- Lots Value
- Not specified
- Awards Value
- Not specified
- Contracts Value
- £13,560,000 £10M-£100M
Notice Dates
- Publication Date
- 28 Jun 20214 years ago
- Submission Deadline
- Not specified
- Future Notice Date
- Not specified
- Award Date
- 3 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
Buyer & Supplier
Contracting Authority (Buyer)
- Main Buyer
- PORTSMOUTH HOSPITALS UNIVERSITY NHS TRUST
- Contact Name
- Mark Magrath
- Contact Email
- mark.magrath@porthosp.nhs.uk
- Contact Phone
- Not specified
Buyer Location
- Locality
- PORTSMOUTH
- Postcode
- PO6 3LY
- Post Town
- Portsmouth
- Country
- England
-
- Major Region (ITL 1)
- TLJ South East (England)
- Basic Region (ITL 2)
- TLJ3 Hampshire and Isle of Wight
- Small Region (ITL 3)
- TLJ31 Portsmouth
- Delivery Location
- TLJ31 Portsmouth
-
- Local Authority
- Portsmouth
- Electoral Ward
- Cosham
- Westminster Constituency
- Portsmouth North
Further Information
Open Contracting Data Standard (OCDS)
View full OCDS Record for this contracting process
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.
{
"tag": [
"compiled"
],
"id": "ocds-h6vhtk-02c113-2021-06-28T18:21:06+01:00",
"date": "2021-06-28T18:21:06+01:00",
"ocid": "ocds-h6vhtk-02c113",
"description": "V.2.1 Date of contract award decision: The Trust Board approved a decision to proceed with Noviniti on 4 May 2021 subject to a further approval on 29 July 2021 with documents to be signed immediately after that. The estimated value in II.1.7 and V.2.4 represents rental to Noviniti (with an estimated value of between PS11.3m to PS13.2m (subject to RPI under the terms of lease arrangements)) and operator revenue under the Deed of circa PS360K (subject to RPI under the terms of the Deed and after deduction of between circa PS7m to PS8m rental obligations to Noviniti)). The operator revenue represents the cost to the operator of running (but not maintaining) the car park and of accounting to and paying across to the Trust all car parking revenue which exceeds the rental obligations to Noviniti and the operator revenue.",
"initiationType": "tender",
"tender": {
"id": "ocds-h6vhtk-02c113",
"legalBasis": {
"id": "32014L0024",
"scheme": "CELEX"
},
"title": "Queen Alexandra Hospital, North Car Park, MSCP",
"status": "complete",
"classification": {
"scheme": "CPV",
"id": "45000000",
"description": "Construction work"
},
"mainProcurementCategory": "works",
"description": "Portsmouth Hospitals University NHS Trust (\"PHUT\") intends to enter into a series of leasing arrangements with Noviniti Dev Co 6 Ltd (\"Noviniti\") and Engie Services Limited (\"Engie\") in respect of a new multi-storey car park development (\"the Development\") at Queen Alexandra Hospital, Portsmouth (\"the Hospital\") with Engie as Noviniti's initial tenant and the car park operator. The contractual arrangements are structured as a land transaction exempt from the Public Contracts Regulations 2015 (PCR) and the Concession Contracts Regulations 2015 (CCR). There is a Deed of Covenant (\"the Deed\") between the Trust and Engie requiring Engie to operate the car park. Noviniti has drawn down a 35-year ground lease of the site in exercise of an option agreement with the PHUT.",
"lots": [
{
"id": "1",
"description": "PHUT now intends to enter into a tripartite Agreement for Underlease with Noviniti and Engie. In this agreement Engie commits to accepting the grant of an 18-year underlease (with rent obligations to Noviniti) on practical completion of the car park. PHUT (as head landlord) will have insurance obligations owed to Engie and a repairing covenant for the car park. PHUT will be required to step-in to take the underlease if Engie fails to enter the underlease at practical completion. PHUT will also be required to enter an Overriding Lease (to become Engie's landlord) if Engie becomes insolvent or defaults on its Underlease in order to maintain the rental payments to Noviniti. PHUT will enter a 12-year Reversionary Lease (with rent obligations to Noviniti) to take effect from the expiry of Engie's underlease. Additional information: Please see Voluntary Transparency Notice of 23.2.2021 for details of option agreement and ground lease https://www.find-tender.service.gov.uk/Notice/003619-2021",
"hasOptions": false
}
],
"items": [
{
"id": "1",
"additionalClassifications": [
{
"scheme": "CPV",
"id": "45213312",
"description": "Car park building construction work"
},
{
"scheme": "CPV",
"id": "98351000",
"description": "Car park management services"
}
],
"deliveryAddresses": [
{
"region": "UKJ31"
}
],
"deliveryLocation": {
"description": "III Queen Alexandra Hospital, Southwick Hill Road, Portsmouth"
},
"relatedLot": "1"
}
],
"procurementMethod": "limited",
"procurementMethodDetails": "Award procedure without prior publication of a call for competition",
"procurementMethodRationaleClassifications": [
{
"scheme": "TED_PT_AWARD_CONTRACT_WITHOUT_CALL",
"id": "D_OUTSIDE_SCOPE",
"description": "The procurement falls outside the scope of application of the directive"
}
],
"procurementMethodRationale": "PHUT considers that the arrangements fall within the land exemption under Regulation 10(1)(a) Public Contracts Regulations 2015 and/or Regulation 10(11)(a) Concessions Contracts Regulations 2015. The Ground Lease can only be drawn down by Noviniti when there is an acceptable planning permission secured. As the planning application is an agreed document under the option agreement (and which will also define the permitted alterations under the Licence for Alterations) the Trust has had input in determining the details of the Development to be delivered on the site. The Ground Lease is subject to break clauses in favour of PHUT after 2 years (to enable PHUT to recover the site if the Development is not commenced) and again at 30th anniversary of practical completion of the Development. On execution of the Ground Lease Noviniti is not obliged to undertake the Development. Once Noviniti has served notice in electing to carry out the Development then this will engage enforceable obligations for Noviniti to carry out and complete the development for PHUT under the terms of the tripartite Agreement for Lease and also the Licence for Alterations granted by PHUT to Noviniti. However, as Noviniti is under no obligation to serve notice to elect to carry out the works PHUT considers that no public works contract arises for lack of an enforceable obligation and Noviniti is able to \"walk away\" from having to deliver the Development. Under a Deed of Covenant between PHUT and Engie, Engie have obligations to open the car park for 24 hours per day every day for each year of the contractual term; apply and collect tariffs and enforcement charges; and apply the car parking policy specified by PHUT. PHUT will secure an annual income relating to the amount by which the rental receipts from the car park operator exceed the total of rental payments to Noviniti under the terms of the underlease, Engie's operator amount (covering costs and an operator margin) and Engie's gainshare amount. If there is a shortfall in the annual income collected to meet yearly rent due from Engle to Noviniti then PHUT would pay Engie an amount equal to the shortfall value. The contractual term is co-terminus with the 18 year underlease from Noviniti to Engie. PHUT considers that if the Deed of Covenant is a services concession contract to operate a car park then its estimated value to Engie over the contractual term would be below the CCR threshold and therefore the CCR would not apply to the Deed."
},
"awards": [
{
"id": "014752-2021-1",
"relatedLots": [
"1"
],
"status": "active",
"suppliers": [
{
"id": "GB-FTS-6503",
"name": "Noviniti Dev Co 6 Ltd"
}
]
}
],
"parties": [
{
"id": "GB-FTS-6502",
"name": "Portsmouth Hospitals University NHS Trust",
"identifier": {
"legalName": "Portsmouth Hospitals University NHS Trust"
},
"address": {
"streetAddress": "Queen Alexandra Hospital, Southwick Hill Road",
"locality": "Portsmouth",
"region": "UKJ31",
"postalCode": "PO6 3LY",
"countryName": "United Kingdom"
},
"contactPoint": {
"name": "Mark Magrath",
"email": "mark.magrath@porthosp.nhs.uk"
},
"roles": [
"buyer"
],
"details": {
"url": "http://www.porthosp.nhs.uk",
"classifications": [
{
"scheme": "TED_CA_TYPE",
"id": "BODY_PUBLIC",
"description": "Body governed by public law"
},
{
"scheme": "COFOG",
"id": "07",
"description": "Health"
}
]
}
},
{
"id": "GB-FTS-6503",
"name": "Noviniti Dev Co 6 Ltd",
"identifier": {
"legalName": "Noviniti Dev Co 6 Ltd"
},
"address": {
"streetAddress": "The Stables, Churchfield Farm, Harley Way, Oundle",
"locality": "Peterborough",
"region": "UK",
"postalCode": "PE8 5AU",
"countryName": "United Kingdom"
},
"contactPoint": {
"email": "jonathan.houlston@noviniti.co.uk"
},
"roles": [
"supplier"
],
"details": {
"scale": "large"
}
},
{
"id": "GB-FTS-537",
"name": "Royal Courts of Justice",
"identifier": {
"legalName": "Royal Courts of Justice"
},
"address": {
"streetAddress": "The Strand",
"locality": "London",
"postalCode": "WC2A 2LL",
"countryName": "United Kingdom"
},
"roles": [
"reviewBody"
]
}
],
"buyer": {
"id": "GB-FTS-6502",
"name": "Portsmouth Hospitals University NHS Trust"
},
"contracts": [
{
"id": "014752-2021-1",
"awardID": "014752-2021-1",
"status": "active",
"value": {
"amount": 13560000,
"currency": "GBP"
},
"dateSigned": "2021-05-04T00:00:00+01:00"
}
],
"language": "en"
}