Notice Information
Notice Title
Offshore Wind Leases Market Valuation - Special Valuation Exercise
Notice Description
Crown Estate Scotland is currently in discussions with Offshore Wind tenants expecting to 'step through' from Option Agreements/Agreement to Lease (i.e., to enter the Lease). Where this 'step through' occurs more than 10 years after the initial option was granted, there is a need to ensure the rent mechanism contained in the Lease reflects 'market value'. When the rent mechanism is fee based (i.e., rent = fee (GBP/MWh) x output (MWh)), there is a need to revalue the original fee to ensure the new fee level represents market value ('Market Value Fee'), at the point when the option call occurs. These special valuation services support the setting of rental terms in a forward-looking manner and to allow CES to comply with its legislative obligations around achieving value
Lot Information
Lot 1
This process presents practical challenges for both CES and tenants seeking to progress the projects as there is a requirement to understand the Market Value Fee in advance of the point of the Option call. An early understanding of the Market Value Fee is helpful to both parties in progressing the project and the Option call preparations. This PIN is seeking to understand views on valuation of a Market Value Fee rental fee in advance of procuring valuation services. CES intends to seek services as follows: - RICS Red Book Valuation of Market Value Fee and accompanying report; - A forward-view approach (model or methodology) that can provide an estimate of Market Value Fee at the point in time in the future when the Option is called for development agreements. This could be up to 12 months following the initial valuation. We expect the forward-view approach to incorporate inflationary forecasts however there may be other considerations to be incorporated; and - Final review/confirmation of the valuation immediately prior to the point at which the Option is triggered. Crown Estate Scotland is considering the above approach in order to provide the necessary visibility to projects seeking to secure finance and ultimately achieve financial close, whilst still complying with a statutory duty to value the rental fee at the point the Option is called.
Notice Details
Publication & Lifecycle
- Open Contracting ID
- ocds-r6ebe6-0000697992
- Publication Source
- Public Contracts Scotland
- Latest Notice
- https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=JUN452012
- Current Stage
- Planning
- All Stages
- Planning
Procurement Classification
- Notice Type
- PCS Notice - Website Prior Information Notice
- Procurement Type
- Standard
- Procurement Category
- Services
- Procurement Method
- Not Specified
- Procurement Method Details
- Not specified
- Tender Suitability
- Not specified
- Awardee Scale
- Not specified
Common Procurement Vocabulary (CPV)
- CPV Divisions
70 - Real estate services
71 - Architectural, construction, engineering and inspection services
-
- CPV Codes
70000000 - Real estate services
71355000 - Surveying services
Notice Value(s)
- Tender Value
- £35,000 Under £100K
- Lots Value
- Not specified
- Awards Value
- Not specified
- Contracts Value
- Not specified
Notice Dates
- Publication Date
- 22 Jun 20223 years ago
- Submission Deadline
- Not specified
- Future Notice Date
- 29 Jul 2022Expired
- Award Date
- Not specified
- Contract Period
- Not specified - Not specified
- Recurrence
- Not specified
Notice Status
- Tender Status
- Planned
- Lots Status
- Planned
- Awards Status
- Not Specified
- Contracts Status
- Not Specified
Buyer & Supplier
Contracting Authority (Buyer)
- Main Buyer
- CROWN ESTATE SCOTLAND
- Contact Name
- Maurice McTeague
- Contact Email
- maurice.mcteague@crownestatescotland.com
- Contact Phone
- +44 1314607657
Buyer Location
- Locality
- EDINBURGH
- Postcode
- EH3 9GL
- Post Town
- Edinburgh
- Country
- Scotland
-
- Major Region (ITL 1)
- TLM Scotland
- Basic Region (ITL 2)
- TLM1 East Central Scotland
- Small Region (ITL 3)
- TLM13 City of Edinburgh
- Delivery Location
- TLM Scotland
-
- Local Authority
- City of Edinburgh
- Electoral Ward
- City Centre
- Westminster Constituency
- Edinburgh East and Musselburgh
Further Information
Notice Documents
-
https://www.publiccontractsscotland.gov.uk/NoticeDownload/DownloadDocument.aspx?id=JUN452012&idx=1
22nd June 2022 - Overview of requirements and questions relating to the PIN -
https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=JUN452012
Offshore Wind Leases Market Valuation - Special Valuation Exercise - Crown Estate Scotland is currently in discussions with Offshore Wind tenants expecting to 'step through' from Option Agreements/Agreement to Lease (i.e., to enter the Lease). Where this 'step through' occurs more than 10 years after the initial option was granted, there is a need to ensure the rent mechanism contained in the Lease reflects 'market value'. When the rent mechanism is fee based (i.e., rent = fee (GBP/MWh) x output (MWh)), there is a need to revalue the original fee to ensure the new fee level represents market value ('Market Value Fee'), at the point when the option call occurs. These special valuation services support the setting of rental terms in a forward-looking manner and to allow CES to comply with its legislative obligations around achieving value
Open Contracting Data Standard (OCDS)
View full OCDS Record for this contracting process
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.
{
"tag": [
"compiled"
],
"id": "ocds-r6ebe6-0000697992-2022-06-22T00:00:00Z",
"date": "2022-06-22T00:00:00Z",
"ocid": "ocds-r6ebe6-0000697992",
"initiationType": "tender",
"parties": [
{
"id": "org-2",
"name": "Crown Estate Scotland",
"identifier": {
"legalName": "Crown Estate Scotland"
},
"address": {
"streetAddress": "Quartermile Two, 2nd Floor, 2 Lister Square",
"locality": "Edinburgh",
"region": "UK",
"postalCode": "EH3 9GL"
},
"contactPoint": {
"name": "Maurice McTeague",
"email": "maurice.mcteague@crownestatescotland.com",
"telephone": "+44 1314607657",
"url": "http://"
},
"roles": [
"buyer"
],
"details": {
"classifications": [
{
"id": "Public Corporation",
"scheme": "TED_CA_TYPE"
},
{
"id": "Property",
"scheme": "COFOG"
}
],
"url": "http://crownestatescotland.com/"
}
}
],
"buyer": {
"name": "Crown Estate Scotland",
"id": "org-2"
},
"planning": {
"documents": [
{
"id": "JUN452012",
"documentType": "plannedProcurementNotice",
"title": "Offshore Wind Leases Market Valuation - Special Valuation Exercise",
"description": "Crown Estate Scotland is currently in discussions with Offshore Wind tenants expecting to 'step through' from Option Agreements/Agreement to Lease (i.e., to enter the Lease). Where this 'step through' occurs more than 10 years after the initial option was granted, there is a need to ensure the rent mechanism contained in the Lease reflects 'market value'. When the rent mechanism is fee based (i.e., rent = fee (GBP/MWh) x output (MWh)), there is a need to revalue the original fee to ensure the new fee level represents market value ('Market Value Fee'), at the point when the option call occurs. These special valuation services support the setting of rental terms in a forward-looking manner and to allow CES to comply with its legislative obligations around achieving value",
"url": "https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=JUN452012",
"format": "text/html"
}
]
},
"tender": {
"id": "CES-2022-06-23PIN",
"title": "Offshore Wind Leases Market Valuation - Special Valuation Exercise",
"description": "Crown Estate Scotland is currently in discussions with Offshore Wind tenants expecting to 'step through' from Option Agreements/Agreement to Lease (i.e., to enter the Lease). Where this 'step through' occurs more than 10 years after the initial option was granted, there is a need to ensure the rent mechanism contained in the Lease reflects 'market value'. When the rent mechanism is fee based (i.e., rent = fee (GBP/MWh) x output (MWh)), there is a need to revalue the original fee to ensure the new fee level represents market value ('Market Value Fee'), at the point when the option call occurs. These special valuation services support the setting of rental terms in a forward-looking manner and to allow CES to comply with its legislative obligations around achieving value",
"status": "planned",
"items": [
{
"id": "1",
"additionalClassifications": [
{
"id": "70000000",
"scheme": "CPV"
}
],
"deliveryAddresses": [
{
"region": "UKM"
}
],
"relatedLot": "1"
}
],
"value": {
"amount": 35000,
"currency": "GBP"
},
"mainProcurementCategory": "services",
"documents": [
{
"id": "JUN452012-1",
"title": "Overview of requirements and questions relating to the PIN",
"url": "https://www.publiccontractsscotland.gov.uk/NoticeDownload/DownloadDocument.aspx?id=JUN452012&idx=1",
"datePublished": "2022-06-22T17:07:26Z",
"dateModified": "2022-06-22T17:07:26Z",
"format": "application/vnd.openxmlformats-officedocument.wordprocessingml.document"
}
],
"lots": [
{
"id": "1",
"description": "This process presents practical challenges for both CES and tenants seeking to progress the projects as there is a requirement to understand the Market Value Fee in advance of the point of the Option call. An early understanding of the Market Value Fee is helpful to both parties in progressing the project and the Option call preparations. This PIN is seeking to understand views on valuation of a Market Value Fee rental fee in advance of procuring valuation services. CES intends to seek services as follows: - RICS Red Book Valuation of Market Value Fee and accompanying report; - A forward-view approach (model or methodology) that can provide an estimate of Market Value Fee at the point in time in the future when the Option is called for development agreements. This could be up to 12 months following the initial valuation. We expect the forward-view approach to incorporate inflationary forecasts however there may be other considerations to be incorporated; and - Final review/confirmation of the valuation immediately prior to the point at which the Option is triggered. Crown Estate Scotland is considering the above approach in order to provide the necessary visibility to projects seeking to secure finance and ultimately achieve financial close, whilst still complying with a statutory duty to value the rental fee at the point the Option is called.",
"status": "planned"
}
],
"communication": {
"atypicalToolUrl": "https://www.publiccontractsscotland.gov.uk/",
"futureNoticeDate": "2022-07-29T00:00:00Z"
},
"coveredBy": [
"GPA"
],
"classification": {
"id": "71355000",
"scheme": "CPV"
}
},
"language": "EN",
"description": "To help inform the scope of any future valuation services, we would welcome feedback on the questions contained in the attached document. Your interest in the procurement will be automatically recorded on the Public Contracts Scotland website. Please email your feedback to the questions to Maurice McTeague, Procurement Manager maurice.mcteague@crownestatescotland.com by 15 July 2022 to allow this to help inform the contract strategy for this procurement. NOTE: To register your interest in this notice and obtain any additional information please visit the Public Contracts Scotland Web Site at https://www.publiccontractsscotland.gov.uk/Search/Search_Switch.aspx?ID=697992. (SC Ref:697992)",
"links": [
{
"rel": "canonical",
"href": "https://api.publiccontractsscotland.gov.uk/v1/Notice?id=ocds-r6ebe6-0000697992"
}
],
"noticetype": "PCS Notice - Website Prior Information Notice"
}