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Development Arrangements relating to the Ground Lease at Harrogate District Hospital

Harrogate and District NHS Foundation Trust

This public procurement record has 3 releases in its history.

Award

19 Aug 2026 at 16:35

UK7 - Contract Details Notice
Award

06 Aug 2026 at 14:20

UK6 - Contract Award Notice
Award

30 Jul 2026 at 16:25

UK5 - Transparency Notice
Summary of the contracting process

Harrogate and District NHS Foundation Trust commissioned development arrangements for land at Harrogate District Hospital, Lancaster Park Road, Harrogate. The requirement concerns a proposed building extension to the existing hospital entrance, intended to accommodate retail and café facilities with associated seating, together with office, storage and circulation space. The arrangements include authorisation for development works, changes to the ground lease, and agreements governing leases of the completed extension and part of the existing entrance. The work is categorised as construction. The Trust remains involved in arrangements for the building structure and related occupation, while the development and associated property arrangements involve Noviniti and retail operator interests.

This procurement has been awarded and the contract is active. Harrogate and District NHS Foundation Trust made a direct award to NOVINITI LIMITED on 6 August 2026; the contract was signed on that date and runs from 18 August 2026 to 5 April 2027. The awarded and contracted value is £3,481,000 excluding VAT, or £4,178,000 including VAT. There is one completed lot and the award is above threshold. The Trust treated the arrangements as a direct-award land contract exempt under the Procurement Act 2023, citing rights and interests in land or buildings and Noviniti’s control of the relevant site. The award also records single-supplier technical reasons. The contract covers works and associated development and lease arrangements rather than a conventional competitively tendered public works contract.

This opportunity indicates demand for suppliers able to deliver or manage construction-led development within a live NHS hospital estate, while handling complex land, lease and development documentation. Credible competitors would need experience coordinating building extensions with existing entrances and hospital operations, alongside retail, café and ancillary accommodation requirements. Capability in construction delivery, development management, property rights, licences for alterations, deeds of variation and agreements for lease would be relevant. The arrangement also involves interfaces with a commercial operator and guarantor, step-in and overriding lease provisions, sub-leasing of the building structure, and income-sharing terms. The single lot was identified as suitable for small and medium-sized enterprises, although the appointed supplier is a large organisation.

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Notice Information

Notice Title

Development Arrangements relating to the Ground Lease at Harrogate District Hospital

Notice Description

On 23 April 2026, Harrogate and District NHS Foundation Trust ("HDFT") and Noviniti Dev Co 15 Ltd ("Noviniti") completed a ground lease ("Ground Lease") in respect of land at Harrogate District Hospital, Lancaster Park Road, Harrogate ("the Hospital"). The Ground Lease relates to an area of the Hospital identified by HDFT and Noviniti as the site of a proposed building extension to the existing entrance to the Hospital. The development will accommodate retail, cafe and associated seating use plus office and storage and circulation space ("the Potential Development"). The agreement leading to the grant of the Ground Lease was the subject of (inter alia) a Transparency Notice published on 21 November 2025 reference C402843, a Contract Award Notice published on 1 December 2025 reference C402843 and a Contract Details Notice published on 29 January 2026 reference C402843. HDFT and Noviniti have now entered into:- (a) a Licence for Alterations to the Ground Lease authorising Noviniti to undertake the Potential Development ("Licence for Alterations"); (b) a Deed of Variation to the Ground Lease varying the terms of HDFT break rights; and (c) a multi-party agreement for lease with Compass Contract Services (UK) Limited ("the Operator") and Compass Group & Ireland Limited ("the Guarantor") ("the S2AFL") providing for the grant by Noviniti to the Operator of a lease of the completed building extension for retail and ancillary uses for a 40 year term (subject to tenant break rights) ("Operator Lease") and the grant by HDFT to the Operator of a lease of part of the existing Hospital entrance for retail and ancillary uses for a 40 year term - co-terminus with the Operator Lease. Under the S2AFL, Noviniti is not obliged to carry out the Potential Development, but if it does not do so, HDFT may exercise its break right to terminate the Ground Lease if Noviniti does not commence the relevant works by an agreed deadline. On completion of the Potential Development Noviniti and the Trust will enter into a further Deed of Variation to vary the terms of the Ground Lease. There is provision for HDFT to accept a direct lease of the retail space from Noviniti in place of the Operator Lease if Compass does not enter into the Operator Lease ("Step-in Lease") and also for HDFT to accept an "Overriding Lease" to become a direct tenant of Noviniti if the Operator defaults during the term of the Operator Lease. There is also provision that in the event that the Operator exercises its break rights to terminate the Operator Lease before the expiry of the 40 year term, then HDFT will be obliged to accept the grant of a "Trust Occupational Lease" of the area which was comprised within the Operator Lease for a term commencing on the date of termination of the Operator Lease and expiring on the date which would have been the date of expiry of the Operator Lease 40 year term. The S2AFL also contains provision for the grant by the Operator to HDFT on completion of the Operator Lease of a sub-lease of the structure of the newly completed building extension demised by Noviniti to the Operator within the Operator Lease. That sub-lease will leave HDFT in control of and responsible for the structure of that space. The S2AFL contains provision for HDFT to enter into a Deed of Covenant with the Operator. The Deed of Covenant will contain provisions relating to sharing of certain surplus between HDFT and the Operator of retail income above an agreed threshold and reimbursement of sums due to/from the Operator as tenant in scenarios where HDFT is at fault or certain adverse events take place. Noviniti is under no obligation to serve notice to elect to carry out the Potential Development. No public work contract rises due to the lack of an enforceable obligation. Following completion of the Ground Lease, Noviniti has control of part of the site of the Potential Development and has the exclusive right to the land on which various of the works comprised in the Potential Development are to be undertaken and practically no other party can undertake the whole of the Potential Development without Noviniti's consent whilst the Ground Lease exists and remains in place ie until such time as the HDFT break right under the Ground Lease becomes capable of exercise on 23 April 2028. As such, the justification for direct award set out in Schedule 5, paragraph 5(a) of the Procurement Act 2023 ("PA2023") applies. In addition, the arrangements constitute "an exempted contract" for the purposes of the PA2023 being contracts for the acquisition of interests or rights in respect of land or buildings and/or which concern interests or rights over land or buildings, in accordance with Schedule 2, Part 2, paragraph 8 of the PA2023. The contractual arrangements the subject of this Notice were previously the subject of a Contract Award Notice dated 06/08/2026 and prior to that the subject of a Transparency Notice dated 30/07/2026.

Procurement Information

The contractual arrangements are structured as a land contract within Schedule 2 paragraph 8 of the Procurement Act 2023 ("the Act") and underlying case law, and as such an "exempted contract" for the purposes of the Act and the Procurement Regulations 2023.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-06d80a
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/079180-2026
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
UK7 - Contract Details Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Direct
Procurement Method Details
Direct award
Tender Suitability
SME
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
£3,481,000 £1M-£10M
Contracts Value
£3,481,000 £1M-£10M

Notice Dates

Publication Date
19 Aug 20261 months ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
6 Aug 20262 months ago
Contract Period
18 Aug 2026 - 5 Apr 2027 6-12 months
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Complete
Awards Status
Active
Contracts Status
Active

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Harrogate and District NHS Foundation Trust
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
HARROGATE
Postcode
HG2 7SX
Postcode Area
Harrogate
Country
England
Major Region (ITL 1)
TLE Yorkshire and The Humber
Basic Region (ITL 2)
TLE2 North Yorkshire
Small Region (ITL 3)
TLE22 North Yorkshire
Delivery Location
Not specified
Local Authority
North Yorkshire
Electoral Ward
Fairfax & Starbeck
Westminster Constituency
Harrogate and Knaresborough

Supplier Information

Number of Suppliers
1
Supplier Name

NOVINITI LIMITED

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

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