Award

Warwick Bar - Land at Fazeley Street

HOMES ENGLAND (THE NAME ADOPTED BY THE HOMES AND COMMUNITIES AGENCY)

This public procurement record has 1 release in its history.

Award

30 Jun 2023 at 13:26

Summary of the contracting process

The Homes and Communities Agency (trading as Homes England) has awarded a contract for the Warwick Bar - Land at Fazeley Street project in Birmingham. The procurement involved an Agreement for Lease and accompanying Lease with Digbeth Loc Limited for a term of 200 years. The contract falls under the works category, with a procurement method of limited using an award procedure without prior publication of a call for competition. The contract has a value of £400,000 and was signed on June 19, 2023.

This tender provides business growth opportunities for companies interested in construction works related to commercial developments. Businesses involved in real estate development, construction, and creative industries would be well-suited to compete for projects similar to the TV studio led redevelopment outlined in this contract. The contract was awarded to Digbeth Loc Limited, a large-scale company based in London, demonstrating opportunities for both local and national firms to engage with public procurement opportunities in the construction sector.

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Notice Title

Warwick Bar - Land at Fazeley Street

Notice Description

This notice relates to an Agreement for Lease and accompanying Lease between the Homes and Communities Agency (trading as Homes England) and Digbeth Loc Limited for a term of 200 years relating to the Banana Warehouse and accompanying land at Fazeley Street, Digbeth, Birmingham, B5 5RT. The subject matter of this contract is not considered by the contracting authority to represent a procurement as defined by the Public Contract Regulations 2015. The resulting agreement includes protections but no controls or positive obligations which would result in this land transaction being considered a procurement of Works or Services. This notice is published on a voluntary basis to satisfy the transparency requirements of both parties to the contract. The value published at II.1.7 and V.2.4 represents the land value to be paid to Homes England as a result of this land transaction, which has been certified as Market Value by independent RICS certified valuers.

Lot Information

Lot 1

The site is located approximately 1.0km (0.6 miles) to the east of Colmore Row, which is considered as Birmingham City Centre. Birmingham Moor Street railway station is located circa 500m away and Birmingham New Street circa 900 m. The site is approximately five minutes' walk from the proposed HS2 arrival point into Birmingham, Curzon Street station. Homes England acquired the Fazeley Street site under the UK Governments "Single Land Programme" in 2016. The proposed parcel of land is a smaller portion of this overall site. Birmingham City Council adopted the Birmingham Development Plan in 2017. This identifies Digbeth as a Creative Quarter and new urban village primarily centred on creative industries, leisure and residential-led mixed use development, and the Council has actively investors and developers to deliver these uses within the area. In February 2022, Digbeth Loc Limited, an English Private Limited Company, approached Homes England with proposals to acquire a portion of the Agency's land in Digbeth to deliver a TV studio led redevelopment by way of a direct negotiated disposal (via an Agreement for Lease). Following detailed consideration, the Agency agreed it was minded to consider the proposals and negotiate disposal terms on the basis of an Agreement for Lease at Market Value. Such an Agreement for Lease at Market Value, as permitted and envisaged within the Public Contract Regulations 2015; the Localism Act 2012 and accompanying regulations and circulars. The Agency has taken advice from external legal advisors and King's Counsel (KC) who have confirmed their opinion that such a lease agreement stands outside the Public Contract Regulations 2015 and does not constitute a procurable opportunity for the purposes of the Regulations. Digbeth Loc Limited have developed proposals for the delivery of a TV studio and related offices on the proposed area outlined in the Agreement for Lease. The gross development value of this scheme is, at 19/12/2022 PS9,073,077 (GBP). This value has been reviewed and independently verified by RICS qualified valuers and Quantity Surveyors on behalf of the Homes England. As of 19/12/2022, an independent Red Book Valuation for the value of the area of land within the proposed Agreement for Lease has been obtained which supports the value of the transaction - Homes England is to sign an Agreement for Lease with Digbeth Loc Limited for PS400,000 (GBP). This payment relates solely to the Banana Warehouse building and adjacent land to deliver a commercial TV studio premises, not the wider Fazeley Street site. The Agency has taken the view that given the nature of the transaction that it is appropriate to publish this Notice on a voluntary basis to satisfy the transparency requirements of both parties to the contract.

Procurement Information

The subject matter of this contract is not considered by the contracting authority to represent a procurement as defined by the Public Contract Regulation 2015. The resulting agreement includes protections but no controls or positive obligations which would result in this land transaction being considered a procurement of Works or Services. This notice is published on a voluntary basis to satisfy the transparency requirements of both parties to the contract.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-03ddec
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/018701-2023
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


CPV Codes

45000000 - Construction work

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£400,000 £100K-£500K

Notice Dates

Publication Date
30 Jun 20232 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
18 Jun 20232 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
HOMES ENGLAND (THE NAME ADOPTED BY THE HOMES AND COMMUNITIES AGENCY)
Contact Name
Not specified
Contact Email
digbeth@homesengland.gov.uk
Contact Phone
Not specified

Buyer Location

Locality
COVENTRY
Postcode
CV1 2GN
Post Town
Coventry
Country
England

Major Region (ITL 1)
TLG West Midlands (England)
Basic Region (ITL 2)
TLG3 West Midlands
Small Region (ITL 3)
TLG33 Coventry
Delivery Location
TLG31 Birmingham

Local Authority
Coventry
Electoral Ward
St Michael's
Westminster Constituency
Coventry South

Supplier Information

Number of Suppliers
1
Supplier Name

DIGBETH LOC

Open Contracting Data Standard (OCDS)

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