Award

Retail and Elective Hub Development

SOUTH WARWICKSHIRE NHS FOUNDATION TRUST

This public procurement record has 1 release in its history.

Award

08 Nov 2023 at 11:28

Summary of the contracting process

The South Warwickshire NHS Foundation Trust has awarded a contract for the development of a retail and administrative hub at Warwick Hospital. The contract involves Noviniti Dev Co 2 Limited, Compass Contract Services (UK) Limited, and Compass Group UK & Ireland Limited. The procurement method used was a limited tender procedure without prior publication. The contract was signed on 3rd November 2023, with a focus on works in the construction industry category within the UKG3 region.

This tender presents business growth opportunities for firms in the construction sector, particularly those experienced in commercial building works. The contract creates a collaborative environment with clear roles specified for the involved parties, including the buying organisation South Warwickshire NHS Foundation Trust and the awarded supplier Noviniti Dev Co 2. Businesses capable of undertaking construction projects in a healthcare setting stand to benefit from this contract.

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Notice Title

Retail and Elective Hub Development

Notice Description

South Warwickshire University NHS Foundation Trust ("SWFT") intends to enter into contracts with (1) Noviniti Dev Co 2 Limited ("Noviniti") (2) Compass Contract Services (UK) Limited ("Compass") and (3) Compass Group UK & Ireland Limited ("Guarantor") as guarantor of Compass' obligations in relation to a single storey retail and administrative use development ("GFD") at Warwick Hospital ("the Hospital"). The documents to be executed by SWFT comprise a Principal Agreement for Underleases ("S2AFL") and a Licence for Alterations ("LTA") to be granted to Noviniti to permit Noviniti to undertake the GFD . The completed building will be leased to Compass for retail purposes with the remainder of the ground floor (together with the building structure) being underlet to SWFT. The contractual arrangements are structured as a land transaction exempt from the Public Contracts Regulations 2015 and the Concession Contracts Regulations 2016.

Lot Information

Lot 1

SWFT intends to enter into the S2AFL with Noviniti, Compass and the Guarantor and the LTA with Noviniti. Under the S2AFL and the LTA, Noviniti has the right to undertake the GFD at the Hospital. Following completion of the GFD, Noviniti will grant two leases ("the Operator Leases") to Compass (guaranteed by the Guarantor). Compass will grant three sub-underleases of areas of the GFD to SWFT. Those sub-leases will comprise two areas for the occupation and use of SWFT and one lease of the common parts and structure of the GFD, leaving Compass in occupation of the retail area of the GFD. SWFT will be obliged to accept leases of the GFD directly from Noviniti if Compass defaults. SWFT has structured the contractual arrangements as a land transaction exempt from the Public Contracts Regulations 2015 ("PCR") and the Concession Contracts Regulations 2016 ("CCR").

Procurement Information

Following on from the Agreement for Lease dated 24 March 2023 entered into between SWFT and Noviniti (S1AFL) relating to the grant to Noviniti of a lease of the site of the GFD for a term of 45 years (the Noviniti Lease), SWFT proposes to enter into the S2AFL and the LTA. Completion of the Noviniti Lease took place on 6 November 2023. The S1AFL was the subject of a VEAT Notice published on 19 January 2023. Under the S2AFL Noviniti is not obliged to undertake the GFD but if it does not, SWFT may terminate the Noviniti Lease. The Noviniti Lease contains a break right in favour of SWFT if Noviniti does not commence the GFD by an agreed deadline. <br/>If Noviniti completes the construction of the GFD, Noviniti may call for Compass and the Guarantor to accept the two Operator Leases which in aggregate comprise the whole of the GFD for a term of 15 years and for SWFT to accept Reversionary Leases of those areas for a further term of 25 years. <br/>There is provision for SWFT to accept direct leases from Noviniti of the GFD in place of the two Operator Leases if Compass defaults and also for SWFT to accept Overriding Leases to become the direct tenant of Noviniti if Compass defaults during the term of the Operator Leases.<br/>Following completion of the Operator Leases, Compass will grant SWFT 3 sub-leases of areas of the GFD being the whole of the GFD other than the retail areas to be occupied and operated by Compass (and to include the common parts and structure of the GFD).<br/>At completion, Noviniti and SWFT will execute a deed of variation surrendering the airspace above the completed GFD. That will permit SWFT to undertake a 2 storey development of hospital wards and administration space to be sited directly above the GFD ("UFD"). SWFT is not required to undertake the UFD but the documents enable SWFT to do so.<br/>At completion, SWFT and Compass may enter into a Deed of Covenant under which turnover rent is payable to the Trust and the Trust commits to support the rent payable by Compass in certain instances.<br/>Noviniti is under no obligation to serve notice to elect to carry out the GFD. No public works contract arises due to the lack of an enforceable obligation.<br/>Following completion of the Noviniti Lease Noviniti has the exclusive right to undertake the GFD until such time as the SWFT break right under the Noviniti Lease becomes capable of exercise.<br/>SWFT considers that the arrangements fall within the land exemption under Regulation 10(1)(a) PCR and/or regulation 10(11)(a) CCR.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-0416b1
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/033015-2023
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

45213100 - Construction work for commercial buildings

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
8 Nov 20232 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
3 Nov 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
SOUTH WARWICKSHIRE NHS FOUNDATION TRUST
Contact Name
Gaynor McGarry
Contact Email
gaynor.mcgarry@swft.nhs.uk
Contact Phone
Not specified

Buyer Location

Locality
WARWICK
Postcode
CV34 5BW
Post Town
Coventry
Country
England

Major Region (ITL 1)
TLG West Midlands (England)
Basic Region (ITL 2)
TLG1 Herefordshire, Worcestershire and Warwickshire
Small Region (ITL 3)
TLG13 Warwickshire CC
Delivery Location
TLG3 West Midlands

Local Authority
Warwick
Electoral Ward
Warwick Saltisford
Westminster Constituency
Warwick and Leamington

Supplier Information

Number of Suppliers
1
Supplier Name

NOVINITI DEV CO 2

Open Contracting Data Standard (OCDS)

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