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Conditional Purchase Agreement for Linear Blocks

Bath and North East Somerset Council

This public procurement record has 2 releases in its history.

Award

05 Aug 2026 at 15:11

UK6 - Contract Award Notice
Award

12 May 2026 at 10:14

UK5 - Transparency Notice
Summary of the contracting process

Bath & North East Somerset Council’s Bath Western Riverside Phase 2 regeneration scheme concerns a land transaction and linked development arrangements with St William Homes LLP, part of the Berkeley Group. The requirement covers planning services, the conditional purchase of approximately 140 affordable dwellings known as the Linear Blocks, their development from “golden brick” stage to practical completion, and optional fit-out works for Block G. Block G has planning permission for 92 dwellings. The arrangements are intended to help the Council secure affordable housing across the former Bath gas works site, where the Council owns part of the land and St William owns the remainder. The work and resulting housing will be delivered at Bath Western Riverside in Bath.

The procurement is complete and St William Homes LLP was selected through a direct award. The awards comprise planning services worth £207,719 gross, fit-out works for Block G worth £184,000, and the Conditional Purchase Agreement for the Linear Blocks worth £29,150,920. The Linear Blocks award was dated 11 July 2026, with a standstill ending 14 August 2026 and planned signature on 17 August 2026. The planning services period runs from 1 June 2026 to 31 July 2029; the fit-out works period runs from 10 August 2026 to 9 February 2032; and the Linear Blocks agreement runs from 17 August 2026 to 30 November 2035. The Council relied on exclusive land ownership, site knowledge and the absence of competition under Schedule 5 of the Procurement Act 2023.

This outcome is most relevant to large housebuilders, regeneration developers and property-led delivery partners able to combine land interests with planning, housing construction and development management. A credible future competitor would need experience of delivering substantial residential schemes, including affordable housing, and of progressing projects affected by former industrial or contaminated land, remediation and complex site conditions. The requirement also demonstrates the value of controlling or working closely with adjoining land, because ownership and access arrangements were central to the chosen supplier’s position. Relevant capability includes securing planning permission, developing homes through golden-brick and practical-completion stages, delivering fit-out works, and coordinating funding, land transfers and linked property agreements. Suppliers without comparable land access, development control or large-scale affordable-housing experience would be less well placed.

How relevant is this notice?

Notice Information

Notice Title

Conditional Purchase Agreement for Linear Blocks

Notice Description

This notice relates to an arrangement which includes a series of agreements, with the main object being a land transaction which the Council considers is exempted under paragraph 8, Schedule 2 of the Procurement Act 2023, (an agreement for the acquisition of land and buildings). The Council considers that the land transaction pursuant to the Land Swap Agreement (as further detailed below) will not meet the definition of public "works contract" as Berkeley will not be obligated to complete any works pursuant to it. The arrangements do include a series of ancillary agreements, as further set out below. This includes an agreement for the conditional purchase and development of Linear Blocks. Should any of the arrangements ultimately be considered caught within the definition of a public works contract, the Council considers it has reasonable grounds for a direct award under Schedule 5 of the Procurement Act 2023 in the circumstances (as explained below). By way of background, Bath Western Riverside is a major component of the Council's SHLAA and housing delivery trajectory. The project was committed in 2010 and has successfully delivered 854 new homes with 25% affordable housing within phase 1. Bath Western Riverside Phase 2 (the Site) is the former Bath gas works site. The Site is part owned by the Council (which owns 31.5%), and part owned by St William Homes LLP (part of the Berkeley Group) (Berkeley) (which owns 68.5%). The Council intervened to acquire its part of the Site in 2019 for regeneration purposes with the objective to maximise the provision of affordable housing delivered given the viability challenges faced from the former land uses and site conditions. To date the Council has carried out a series of staged initial gas rationalisation and remediation and enabling works, funded predominantly by Homes England, across the Site. In order to comply with both planning and strategic housing aims, the Council must obtain a minimum number of affordable housing units across the Site as a whole and therefore has the option to either: procure the construction of such units itself, being restricted to its own part of the Site; or to increase provision by acquiring units from Berkeley (additionality) which will be constructed on Berkeley's land. The total "land swap" transaction will be contracted for in phases as follows: Primary Agreement: 1. Land Swap Agreement - Subject to achieving a satisfactory planning permission and Berkeley (at its own volition) building to a "golden brick" level on the part of the Site known as "Block G" (currently owned by Berkeley), Berkeley will transfer the freehold interest in Block G to the Council in return for the Council transferring its part of the Site to Berkeley. There will be additional balancing payments paid by each party to ensure the agreed price is received for each party's land. 2. Block G - Following completion of the land swap, Berkeley will obtain a permissive licence from the Council to continue to occupy Block G for the purposes of completing the construction of Block G (at its own volition) in accordance with the relevant planning permission, being the planning permission with reference 22/03224/EFUL for the construction of 92 dwellings, being the "Block G Planning Permission"). Note that the Council do not consider that this arrangement meets the definition of a public works contract. 3. Fit out works - Within the Land Swap Agreement, the Council will also have an option (but not an obligation) to call for Berkeley to enter a contract to upgrade the finish for Block G at an additional cost. The Council considers that if it chooses to enter into such an agreement in the future, the value of this contract will be below the threshold for a public works contract under the Procurement Act 2023. Ancillary Agreement/s 4. Conditional Purchase Agreement for Linear Blocks - subject to completing the Land Swap Agreement, the site for the Linear Blocks will then be owned by Berkeley. Subject to funding and therefore at its option, the Council may purchase c140 dwellings known as the "Linear Blocks" from Berkeley to golden brick should Berkeley choose to build them. The transfer will be conditional on the Council obtaining the relevant funding and Berkeley reaching golden brick 5. Conditional Development Agreement for Linear Blocks - the parties will also be entering into a conditional development agreement to deal with the development of the Linear Blocks from golden brick level to practical completion. Due to ownership and access limitations only Berkely could complete these development works. In order to achieve the outputs above Berkeley will in addition undertake initial planning services to secure satisfactory planning permission over the current Council land which does not yet have planning permission. Berkeley has already secured planning permission over its part of the Site. To the extent Berkeley receives consideration for these services from the Council, such sums will be below the threshold for the services under the Procurement Act 2023. The main object of the Land Swap Agreement is to enable each party to acquire land and/or buildings from the other. In any event the Land Swap Agreement will contain no express obligation on Berkeley to undertake any works and therefore is not a public works contract for the purpose of the Procurement Act 2023. To the extent that a Court were to determine that one or more of the agreements does fall within the remit of the Procurement Act 2023, including the Conditional Purchase Agreement for Linear Blocks, to which this Notice specifically relates, then the Council considers that the direct award justification set out in paragraph 5 (Single suppliers) and/or paragraph 6 (absence of competition) of Schedule 5 of the Procurement Act 2023 may also apply to the award of the Land Swap Arrangement (alongside the ancillary agreements) because Berkeley has exclusive rights over the Site by virtue of its existing land ownership, coupled with its unique knowledge and understanding of the challenges associated with the development of the Site on account of its historic usage and ownership. Only Berkeley is in the position to be able to deliver the volume of affordable housing provided via the Land Swap Agreement (or the opportunity for the same) alongside its own development scheme on the Site. In addition, B&NES have received formal confirmation from their property advisors, Carter Jonas, that the overall value for money and linked best consideration terms in purchasing the units from Berkeley are materially better than could be obtained by B&NES in the open market, directly due to Berkeley's adjoining land interests here, and the linked property and funding terms too. Subject to satisfaction of conditions linked to funding and planning consent the Land Swap Agreement shall be signed in August 2026 with the target date for completion of the legal transfer being March 2027 with construction of Block G completing in December 2029 and construction of the Linear Blocks completing in 2032.

Procurement Information

The main object of the Land Swap Agreement is to enable each party to acquire land and/or buildings from the other. In any event the Land Swap Agreement will contain no express obligation on Berkeley to undertake any works and therefore is not a public works contract for the purpose of the PA23. To the extent that a Court were to determine that one or more of the agreements does fall within the remit of the PA23, then the Council considers that the direct award justification set out in paragraph 5 (Single suppliers) and/or paragraph 6 (absence of competition) of Schedule 5 of the Procurement Act 2023 may also apply to the award of the Land Swap Arrangement because Berkeley has exclusive rights over the Site by virtue of its existing land ownership, coupled with its unique knowledge and understanding of the challenges associated with the development of the Site on account of its historic usage and ownership. Only Berkeley is in the position to be able to deliver the volume of affordable housing provided via the Land Swap Agreement (or the opportunity for the same) alongside its own development scheme on the Site. In addition, B&NES have received formal confirmation from their property advisors, Carter Jonas, that the overall value for money and linked best consideration terms in purchasing the units from Berkeley are materially better than could be obtained by B&NES in the open market, directly due to Berkeley's adjoining land interests here, and the linked property and funding terms too.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-069668
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/074289-2026
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
UK6 - Contract Award Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Direct
Procurement Method Details
Direct award
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

45 - Construction work

71 - Architectural, construction, engineering and inspection services

CPV Codes

45210000 - Building construction work

71240000 - Architectural, engineering and planning services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
£29,508,019 £10M-£100M
Contracts Value
Not specified

Notice Dates

Publication Date
5 Aug 20261 months ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
11 Jul 20262 months ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Complete
Awards Status
Pending
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Bath and North East Somerset Council
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
BATH
Postcode
BA1 5AW
Postcode Area
Bath
Country
England
Major Region (ITL 1)
TLK South West (England)
Basic Region (ITL 2)
TLK5 West of England
Small Region (ITL 3)
TLK52 Bath & North East Somerset and South Gloucestershire
Delivery Location
Not specified
Local Authority
Bath and North East Somerset
Electoral Ward
Kingsmead
Westminster Constituency
Bath

Supplier Information

Number of Suppliers
1
Supplier Name

ST WILLIAM HOMES LLP

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

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