Notice Information
Notice Title
Basildon Hospital main entrance and retail facility
Notice Description
Mid and South Essex NHS Foundation Trust ("MSE") intends to enter into a series of leasing arrangements with Noviniti Dev Co 8 Ltd ("Noviniti") and WHSmith ("WHS") in respect of a retail development ("the Development") at Basildon Hospital, Essex ("the Hospital") with WHS as Noviniti's initial tenant and retail operator. MSE has structured the contractual arrangement as a land transaction exempt from the Public Contracts Regulations 2015 (PCR) and the Concession Contracts Regulations 2015 (CCR). Noviniti has an option to draw down a 35-year ground lease ("GL") of the site in exercise of an option agreement ("OA") with MSE. The GL has break clauses in favour of MSE after 2 years (so MSE can recover the site if the Development is not commenced) and 30 years from practical completion of the Development.
Lot Information
Lot 1
MSE now intends to enter into a tripartite Agreement for Underlease with Noviniti and WHS. In this agreement WHS commits to accepting the grant of a 15-year underlease (with rent obligations to Noviniti) on practical completion of the retail facilities. MSE (as head landlord) will have insurance obligations owed to WHS and a repairing covenant for the retail facilities. MSE may step-in to take the underlease if WHS fails to enter the underlease at practical completion. MSE may enter an Overriding Lease (to become WHS's landlord) if WHS becomes insolvent or defaults on its Underlease, in order to maintain the rental payments to Noviniti. MSE may enter a 15-year Reversionary Lease (with rent obligations to Noviniti) to take effect from the expiry of WHS's underlease. MSE may instead direct these leases be granted to an alternate operator if MSE guarantees rent. There will be some office space and common parts delivered as part of the scheme. Additional information: Please see Voluntary Transparency Notice of 22.3.2021 for details of option agreement and ground lease https://www.find-tender.service.gov.uk/Notice/005723-2021
Procurement Information
MSE 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 GL can only be drawn down by Noviniti when acceptable planning permission is secured. As the planning application is an agreed document under the OA and defines the permitted alterations under the Licence for Alterations the Trust has had input to the details of the Development. On execution of the GL Noviniti is not obliged to undertake the Development. Once Noviniti serves notice electing to carry out the Development this engages enforceable obligations for Noviniti to carry out and complete the Development for MSE under the terms of the Agreement for Lease and the Licence for Alterations. Under a separate 15 year lease between MSE and WHS of additional space at the Hospital, MSE secures an annual income of rent from the separate lease and a turnover share from retail carried out in the additional space and at the Development. At practical completion MSE guarantees to meet the payment and performance obligations of WHS for the 15-year term of the Operator Lease; any alternate tenant it nominates to take the Reversionary Lease; any other costs which Noviniti may incur in relation to the Development for 30 years. The guarantee protects Noviniti's investment where MSE does not itself enter the Reversionary Lease, Step-In Lease and/or Overriding Lease. MSE holds that there is no works contract for lack of an enforceable obligation and Noviniti is able to "walk away" from having to deliver the Development and/or MSE is able to award the Development on the basis that Noviniti has an exclusive right to the land conferred under the GL pursuant to Regulation 32(2)(b)(iii) Public Contracts Regulations 2015. To the extent that the overall scheme could be considered a mixed contract of works and a land transaction, MSE holds that the land element is the main object of the arrangement MSE holds that there is no works concession contract as there is insufficient transfer of operating risk to Noviniti in exploiting the works.
Notice Details
Publication & Lifecycle
- Open Contracting ID
- ocds-h6vhtk-02cb74
- Publication Source
- Find A Tender Service
- Latest Notice
- https://www.find-tender.service.gov.uk/Notice/017414-2021
- 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
55 - Hotel, restaurant and retail trade services
-
- CPV Codes
45000000 - Construction work
45214710 - Entrance hall construction work
45215100 - Construction work for buildings relating to health
45215140 - Hospital facilities construction work
55900000 - Retail trade services
Notice Value(s)
- Tender Value
- Not specified
- Lots Value
- Not specified
- Awards Value
- Not specified
- Contracts Value
- £10,650,000 £10M-£100M
Notice Dates
- Publication Date
- 22 Jul 20214 years ago
- Submission Deadline
- Not specified
- Future Notice Date
- Not specified
- Award Date
- 14 Jul 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
- MID AND SOUTH ESSEX NHS FOUNDATION TRUST
- Contact Name
- Tracey Leforte
- Contact Email
- tracey.leforte1@nhs.net
- Contact Phone
- +44 1702508120
Buyer Location
- Locality
- BASILDON
- Postcode
- SS16 5NL
- Post Town
- Southend-on-Sea
- Country
- England
-
- Major Region (ITL 1)
- TLH East (England)
- Basic Region (ITL 2)
- TLH3 Essex
- Small Region (ITL 3)
- TLH37 Essex Thames Gateway
- Delivery Location
- TLH37 Essex Thames Gateway
-
- Local Authority
- Basildon
- Electoral Ward
- Langdon Hills
- Westminster Constituency
- South Basildon and East Thurrock
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.
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