Award

Development Agreement in relation to Great North Leisure Park and Finchley Leisure Centre

LONDON BOROUGH OF BARNET

This public procurement record has 1 release in its history.

Award

15 Jan 2025 at 19:05

Summary of the contracting process

The London Borough of Barnet (LBB) has completed the award stage of a procurement process for a development agreement focused on the Great North Leisure Park (GNLP) and the Finchley Leisure Centre in Barnet, North London. The council plans to enter into a contractual agreement with Regal GNLP Limited to develop a new leisure centre on the site north of the GNLP. The agreement involves variations to headleases to accommodate the development, with the developer contributing up to £29M of the estimated £45M (excluding VAT) cost through land receipts. The procurement, classified under the industry category "Development of non-residential real estate," follows a negotiated process without publication due to exclusive rights held by the developer, with the anticipated completion in January 2029 and a long-stop date of five years from completion.

This tender presents substantial opportunities for businesses involved in construction, real estate development, and leisure facility management. The project aims to create a new, modern leisure facility that will replace the existing Finchley Leisure Centre, benefitting local communities. Companies with expertise in mixed-use developments, specifically those capable of meeting various planning and funding conditions, would be well-positioned to compete for subcontracting opportunities. Additionally, suppliers who can offer innovative leisure solutions within the specified budgetary constraints may find this an attractive prospect to showcase their capabilities and expand their portfolios in the capital.

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Notice Title

Development Agreement in relation to Great North Leisure Park and Finchley Leisure Centre

Notice Description

II.1.4) Short Description: The project is for the development of the site to the north of the Great North Leisure Park, Finchley, London. The London Borough of Barnet (LBB) intend to enter into a development agreement with Regal GNLP Limited. LBB is the freeholder of a large area of land including the Great North Leisure Park ("GNLP") and the Developer owns a long headlease of GNLP and a headlease of land to the north of GNLP (known as Glebelands). Part of the land comprised within the Headlease, is subject to an underlease back to LBB of the current Finchley Leisure Centre. The developer intends to develop a residential led mixed-use scheme on the GNLP site, including the plot occupied by the current Finchley Leisure Centre. LBB has identified that the site to the north of GNLP can accommodate a replacement leisure centre to the current Finchley Leisure Centre and is attracted by this opportunity to refresh facilities and make a step-change in local leisure provision.

Lot Information

Lot 1

The project is for the development of the site to the north of GNLP. Under the development agreement the parties will vary the Headleases to accommodate a proposed development on the Developer's site. The Developer will surrender a strip of land to facilitate the development of a Leisure Centre and build the Leisure Centre on the former bowling green site owned by the Council to the north of GNLP. The estimated value of the Leisure Centre is PS45MexcVAT. The Leisure Centre will be part funded up to PS29M by the developer through land receipts. An alternative scheme in contemplation is a smaller leisure centre with fewer facilities offering a lower cost option in the range of PS29-45M. The development is subject to various conditions (planning, funding and ground investigation) and will contain protections if the development of the Leisure Centre does not proceed. This may include a smaller leisure centre or surrender of the lease and retaining the site of the current Leisure Centre. Additional information: Authorisation to proceed with Development Agreement Decision - Great North Leisure Park (GNLP) and Finchley Lido Leisure Centre - Development Agreement (DA) can be accessed by copy and pasting the following into web brower search https://barnet.moderngov.co.uk/ieDecisionDetails.aspx?ID=9506

Options: Subject to performance and budget there is a contractual price review mechanism, and an alternative option for a smaller leisure centre at the same site.

Procurement Information

This VEAT Notice sets out the Council's intention to directly contract with Regal GNLP Limited (the "Developer") to develop a New Leisure Centre in North Finchley. There is an anticipated target completion date of January 2029 and an overall long stop date of 5 years from completion. The Council intends to observe a period of at least 10 days from the date of publication of this VEAT and will not enter into the contract during that period. The Council considers that the award of the Development Agreement is permitted pursuant to Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015 (PCR) which permits the use of negotiated procedure without prior publication for public works contracts, public supply contracts and public service contracts where the works, supplies or services can be supplied only by a particular economic operator on the basis of the protection of exclusive rights, and the absence of competition is not the result of an artificial narrowing down of the parameters of the procurement. The Council's view is that the development can only be delivered by the Developer because the Developer has exclusive rights under a long leasehold interest in the land and no reasonable alternative or substitute exists. The Council's view is that because the Developer has a leasehold interest over land which encroaches on the proposed site of the New Leisure Centre and therefore has control of access to the new site, and because Regal would need to surrender part of its current lease on the existing leisure centre to make the entire footprint of the New Leisure Centre available for development, to deliver this project, the Council must enter into contract directly with the Developer. If the Council does not develop the New Leisure Centre, it will be retaining an ageing, inefficient and increasingly expensive asset. No alternative provider could undertake the Development Agreement to develop the New Leisure Centre because the Developer controls access to the land and will need to surrender part of its current lease to the Council to make the New Leisure Centre available for development and there is no alternative suitable site. This absence of competition is not the result of an artificial narrowing down of the parameters of the procurement

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-04d069
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/001430-2025
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
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

70 - Real estate services


CPV Codes

70112000 - Development of non-residential real estate

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£45,000,000 £10M-£100M

Notice Dates

Publication Date
15 Jan 20251 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
20 Dec 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
LONDON BOROUGH OF BARNET
Contact Name
Cassie Bridger
Contact Email
cassie.bridger@barnet.gov.uk
Contact Phone
+44 2083592397

Buyer Location

Locality
LONDON
Postcode
NW9 4EW
Post Town
North West London
Country
England

Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI7 Outer London - West and North West
Small Region (ITL 3)
TLI71 Barnet
Delivery Location
TLI71 Barnet

Local Authority
Barnet
Electoral Ward
Colindale North
Westminster Constituency
Hendon

Supplier Information

Number of Suppliers
1
Supplier Name

REGAL GNLP

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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