Award

Forward Funding Agreement relating to land at Princes Rock, Embankment Road, Plymouth PL4 9HX

PLYMOUTH CITY COUNCIL

This public procurement record has 1 release in its history.

Award

08 May 2025 at 10:22

Summary of the contracting process

Plymouth City Council, a regional or local authority located in the United Kingdom, has completed a procurement process with Loc8 Developments (Plymouth 2) Limited for a Forward Funding Agreement concerning land at Princes Rock, Embankment Road, Plymouth (PL4 9HX). This contract, which falls under the 'Financial and insurance services' category, was awarded without prior publication of a call for competition, as it is considered to be outside the scope of the Public Contracts Regulations 2015. The process involved a limited procurement method and has moved to the award stage with an active status as of May 2, 2025. The contract value stands at £13,354,407 GBP, and the arrangements include the proposed development of a new hotel and three food retail units on the site.

The agreement opens avenues for significant business opportunities, particularly for companies in the construction, hospitality, and retail sectors. The arrangement highlights potential collaboration for businesses involved in planning permissions, building contracts, and retail operations. Companies with expertise in these areas, especially those with interests in regional developments and partnerships with local authorities, would find this tender particularly lucrative. As the developmental scope involves phased financing tied to specific milestones and planning permissions, businesses capable of meeting such staged requirements and maintaining flexibility in designing and executing specified requirements will be well-suited to engage in this project.

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Notice Title

Forward Funding Agreement relating to land at Princes Rock, Embankment Road, Plymouth PL4 9HX

Notice Description

This voluntary notice relates to arrangements governed by a proposed Forward Funding Agreement ("FFA") between the Council and Loc8 Developments (Plymouth 2) Limited ("Developer") in respect of land owned by the Council at Embankment Road, Plymouth and has been issued on that basis that such arrangements fall outside the remit of the Public Contracts Regulations 2015 for the reasons set out under section II.2.4 and Annex D1 of this notice.

Lot Information

Lot 1

This voluntary ex ante transparency notice relates to arrangements governed by a proposed Forward Funding Agreement ("FFA") between the Council and LOC8 Developments (Plymouth 2) Limited ("Developer") in respect of a site owned by the Council at Embankment Road, Plymouth ("Site"). The Developer has identified an opportunity for a new hotel and three new food retail units to be built on the Site (the "Development"), in each case to meet the design/specification requirements (the "Specification") agreed through negotiation between the Developer and the respective hotel chain and food retail chain operators. The object of the FFA is to govern the provision of finance by the Council for the Development. The finance is to be provided by the Council in stages, conditional on certain Development milestones being met. The FFA envisages that the Developer will initially obtain planning permission for the relevant Development, but does not impose any binding obligation on the Developer to do so. The FFA also envisages that if satisfactory planning is achieved, the Developer will be the party entering into a building contract with a third party in relation to the relevant Development, but there is no binding obligation on the Developer to do so, nor otherwise to procure the carrying out of the relevant works. Consequently, the Developer would not be in breach of the FFA by virtue of choosing not to take steps to obtain the relevant planning permission nor, having obtained the relevant planning permission, choosing not to procure the carrying out of the relevant works. The FFA further envisages that the Council (in its capacity as owner of the Site) and the Developer will also enter an agreement for lease with each of the relevant hotel chain and food retail chain operators. Under each of these agreements for lease, the Developer will be required to use reasonable endeavours to obtain satisfactory planning permission for the respective development and once obtained, to design and carry out the relevant development. These obligations to develop are undertaken by the Developer for the benefit of the relevant hotel chain or food retail chain operator, as prospective tenant ("Tenant") of the relevant hotel/retail outlet and not for the benefit of the Council. Furthermore, those works have not been specified by the Council (being works which instead have been specified by the relevant tenants to meet their respective requirements), nor has the Council had nor will it have (outside of its separate capacity as local planning authority) any decisive influence on the type or design of those works.

Procurement Information

Under Regulation 2 of the Public Contracts Regulations 2015 a public works contract means public contracts which have as their object any of the following:- (a) the execution, or both the design and execution, of works related to one of the activities listed in Schedule 2; (b) the execution, or both the design and execution, of a work; (c) the realisation, by whatever means, of a work corresponding to the requirements specified by the contracting authority exercising a decisive influence on the type or design of the work; The Council does not consider that the arrangements governed by the proposed Forward Funding Agreement (as described in section II.2.4 of this notice above) constitutes the procurement of a public works contract as defined above (or any other type of public contract) within the scope of the Public Contracts Regulations 2015 for the following reasons:- (i) The FFA does not place any enforceable legal obligation, either immediate or contingent, on the Developer to carry out any works (for the benefit of the Council or otherwise). The FFA envisages that the Developer will initially obtain planning permission, but does not impose any binding obligation on the Developer to do so. If satisfactory planning is achieved, the Developer will be the party entering into any building contract relating to the Development, but there is no binding obligation on the Developer to do so, nor otherwise to procure the carrying out of the relevant works. As for the associated agreements for lease between the Council, the Developer and the relevant tenant, the obligations undertaken by the Developer to carry out any works are for the benefit of the relevant tenant and not the Council. (ii) Furthermore, the works which the Forward Funding Agreement and the associated agreements for lease envisage may be carried out in the future by the Developer, are not works that have been specified by the Council (being works which instead have been specified by the relevant tenants to meet their respective requirements), nor has the Council had nor will it have (outside of its separate capacity as local planning authority) any decisive influence on the type or design of those works.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-050e8d
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/019647-2025
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Limited
Procurement Method Details
Award procedure without prior publication of a call for competition
Tender Suitability
Not specified
Awardee Scale
SME

Common Procurement Vocabulary (CPV)

CPV Divisions

66 - Financial and insurance services


CPV Codes

66000000 - Financial and insurance services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£13,354,407 £10M-£100M

Notice Dates

Publication Date
8 May 20259 months ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
1 May 20259 months 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
PLYMOUTH CITY COUNCIL
Contact Name
Sarah Partridge
Contact Email
sarah.partridge@plymouth.gov.uk
Contact Phone
+44 1752307967

Buyer Location

Locality
PLYMOUTH
Postcode
PL1 3BJ
Post Town
Plymouth
Country
England

Major Region (ITL 1)
TLK South West (England)
Basic Region (ITL 2)
TLK4 Devon
Small Region (ITL 3)
TLK41 Plymouth
Delivery Location
TLK41 Plymouth

Local Authority
Plymouth
Electoral Ward
St Peter and the Waterfront
Westminster Constituency
Plymouth Sutton and Devonport

Supplier Information

Number of Suppliers
1
Supplier Name

LOC8 DEVELOPMENTS (PLYMOUTH 2

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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