Award

Giles Lane Student Accommodation Project

UNIVERSITY OF KENT

This public procurement record has 1 release in its history.

Award

02 Aug 2024 at 15:58

Summary of the contracting process

The University of Kent has initiated the Giles Lane Student Accommodation Project in Canterbury, Kent, aimed at developing 845 new student rooms. This project falls under the construction work industry category and involves a public works contract. The procurement process has reached the award stage as of 2nd August 2024, and the contract, valued at £418,000,000, will be executed using the Negotiated Procedure without prior publication, justified under Regulation 32(2)(b)(iii) of the Public Contract Regulations 2015. The contractor for this development is Giles Lane Investments Limited, in partnership with Deutsche Bank and various landowners and developers.

This tender provides substantial opportunities for businesses involved in large-scale construction, property management, and student accommodation services. Companies specialising in construction, particularly those with experience in educational buildings and student housing, would be well-suited for this project. The unique procurement method implies a closed competition, but businesses can still benefit by engaging in subcontracts or supplementary services required for the completion of this extensive development plan. The involvement of multiple stakeholders and the scale of the project present numerous avenues for business growth and collaboration in the education sector.

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Notice Title

Giles Lane Student Accommodation Project

Notice Description

Intention to award a Public Works contract under Regulation 32(2) (b) (iii) of the Public Contract Regulations 2015 for the development of student accommodation at Giles Lane, Canterbury, Kent. The Negotiated Procedure without Prior Publication is being followed and is justified under Regulation 32 (2) (b) (iii).

Lot Information

Lot 1

This Notice sets out the contracting authority's intention to award a works contract using the negotiated procedure without prior publication, in accordance with Regulation 32 of the Public Contracts Regulations 2015. The University of Kent (the "University") intends to enter into a transaction to secure new student accommodation ("the Transaction"). The University will enter into an Agreement for Lease ("AFL") with Deutsche Bank (the "Fund") and Giles Lane Investments Limited (the "Developer") for the construction of 845 new student rooms (the "Development") on a property which contains three separate parcels of land currently under different ownership. Attached at Annex 1 is a plan with coloured shading which indicates the ownership of the parcels of land. The University are the freehold proprietors of the land shaded blue ("University Land"), Citi Nests Canterbury Limited ("Citi Nest") are the freehold proprietors of the land shaded green ("Citi Nest's Land") and St Edmunds School are the freehold proprietors of the land shaded yellow on the Plan (the "School's Land"). Attached at Annex 2 is the redline plan for the demise, which encompasses the University Land, Citi Nest's Land, and part of the School's Land. The Developer has the exclusive option to purchase the University Land and Citi Nest's Land (the "Options"). The Developer will purchase Citi Nest's Land and transfer the freehold to the University. The Developer is finalising an agreement with the School for the transfer of this land to the University. The Developer has obtained planning permission for the Development. The AFL will contain obligations on the Developer to procure the construction of the Development and obligations on the Fund to grant an occupational lease to the University ("the Underlease") on practical completion of the Development. The Underlease will be a full repairing and insuring, financing lease, with limited rights of alienation by the University, containing an indexing rent with cap and collar. On expiry of the Underlease, subject to payment of all rents and interest to the Fund, the University will have the option to purchase the Headlease from the Fund for one pound (PS1) (the Fund will also have the option to require the University to purchase the Headlease for one pound (PS1)). The Transaction comprises a number of other arrangements, including: * a building contract between the Developer and a building contractor, and the appointments of a professional team by the Developer, with warranties in favour of the University; * arrangements in respect of the construction and maintenance of the squash court, which is described in section IV.1.1; * [licence arrangements to enable the Developer to locate contractor welfare facilities and store other materials on the University's campus;] * the Developer is already progressing the development of phase one on other land known as Landon. This was intended to comprise one large development of student accommodation together with this Development. However, it was progressed independently; * the University will receive a payment on completion of the Transaction. The works can only be provided by the Developer for the following reason: protection of exclusive rights under Regulation 32 (2) (b) (iii) of the Public Contracts Regulations 2015.

Procurement Information

The University in good faith considers that the award of the contract without prior publication of a contract notice is permitted by Part 2 of the Public Contracts Regulations 2015 (as amended). The University's justification for this view is that, in good faith, it considers that the works to be delivered under the contract can only be provided by a particular economic operator (i.e. the Developer) for the following reason: protection of exclusive rights under Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015. The University considers that: * the University and the Developer are progressing the development of the Landon site to acquire urgently needed new student accommodation; * the University still requires new student accommodation to meet its growing student demand and the Development is capable of being delivered in time for the academic year 2026/27 intake of students; * the University's students demand "on campus" accommodation and the Development is ideally located on a site which adjoins, and can be incorporated into, the University's campus; * the Developer holds exclusive rights to acquire part of the land intended for Development under the Options[ and will be holding the exclusive rights to acquire the remaining land before this Transaction is entered into]; * the Developer's exclusive rights include; o the Developer's rights in respect of Citi Nest's Land (shaded green on the Plan), pursuant to the Options; o the fact that Citi Nest's Land adjoins the University's Canterbury campus; o [the future Developer's rights in respect of the School's Land, pursuant to a future option;] o [the fact that the School's Land adjoins the University's Canterbury Campus;] o the Developer has secured planning permission for the Development; o the Developer owns the intellectual property in the design for which planning permission has been obtained; o [the Developer has negotiated terms with a third party, to deliver the squash courts, which is required to satisfy a condition in the relevant planning permission;] o the Developer has negotiated terms with a funder and contractor, such that the Developer will commit (in the AFL) to delivering the Development in time for the academic year 2026/27; * this opportunity for the Development and the Transaction exists solely as a result of those rights; * the absence of competition is not a result of artificial narrowing down of the parameters of the procurement by the University; * no reasonable alternative or substitute exists for the delivery of so many rooms "on campus"; and * [there is no reasonable alternative route to acquire Citi Nest land for development without it being a condition under the Transaction for the Developer to be the supplier appointed to undertake any development works.]

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-04876c
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/024395-2024
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Limited
Procurement Method Details
Negotiated without publication of a contract notice
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
£418,000,000 £100M-£1B

Notice Dates

Publication Date
2 Aug 20241 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
1 Aug 20241 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
UNIVERSITY OF KENT
Contact Name
Mark Reed
Contact Email
m.reed@kent.ac.uk
Contact Phone
+44 1227824301

Buyer Location

Locality
CANTERBURY
Postcode
CT2 7NZ
Post Town
Canterbury
Country
England

Major Region (ITL 1)
TLJ South East (England)
Basic Region (ITL 2)
TLJ4 Kent
Small Region (ITL 3)
TLJ44 East Kent
Delivery Location
TLJ4 Kent

Local Authority
Canterbury
Electoral Ward
Blean Forest
Westminster Constituency
Canterbury

Supplier Information

Number of Suppliers
1
Supplier Name

GILES LANE INVESTMENTS

Open Contracting Data Standard (OCDS)

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