Award

Basildon Hospital main entrance and retail facility

MID AND SOUTH ESSEX NHS FOUNDATION TRUST

This public procurement record has 1 release in its history.

Award

10 Oct 2021 at 17:05

Summary of the contracting process

The Mid and South Essex NHS Foundation Trust has successfully completed a tender for the development of the main entrance and retail facility at Basildon Hospital, Essex, classifying it under construction works (CPV code 45000000). This project, valued at £10,650,000, involves leasing arrangements with Noviniti Dev Co 8 Ltd and WHSmith as the initial tenant. The procurement process was conducted via a limited method, with the award decision finalised on 15th July 2021. The related activities were officially completed as of 10th October 2021.

This procurement opportunity may foster significant business growth, particularly for companies specialising in construction, retail development, and related services within the healthcare sector. Enterprises with experience in developing hospital facilities or retail spaces, as well as those capable of undertaking long-term leasing agreements, would be particularly well-suited to compete in similar future tenders. The strategic partnership model employed here also presents a viable avenue for businesses seeking to engage with healthcare authorities on collaborative development projects.

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How relevant is this notice?

Notice Title

Basildon Hospital main entrance and retail facility

Notice Description

Mid and South Essex NHS Foundation Trust ("MSE") has entered 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 2016 (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 has entered 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 22/03/2021 for details of option agreement and ground lease - https://www.find-tender.service.gov.uk/Notice/005723-2021

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-02ea38
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/025291-2021
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
£10,650,000 £10M-£100M
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£10,650,000 £10M-£100M

Notice Dates

Publication Date
10 Oct 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
Cancelled
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
MID AND SOUTH ESSEX NHS FOUNDATION TRUST
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
NETHERMAYNE
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

Supplier Information

Number of Suppliers
1
Supplier Name

NOVINITI DEV CO 8

Open Contracting Data Standard (OCDS)

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