---
title: "SME Housing Fund - Procurement of a Fund Manager"
ocid: "ocds-h6vhtk-02947d"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-02947d"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-02947d.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-02947d.json"
source: "Find A Tender Service"
current_stage: "Tender"
buyer: "CARDIFF COUNCIL"
published: "2021-02-19"
---

# SME Housing Fund - Procurement of a Fund Manager

Buyer: CARDIFF COUNCIL  
Current stage: Tender  
OCID: ocds-h6vhtk-02947d

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## Summary

Cardiff Council is inviting tenders for the position of Fund Manager as part of the SME Housing Fund initiative, aimed at providing financial services for small to medium-sized enterprises (SMEs) in the housing sector within the South East Wales region. The procurement stage is currently in the Tender phase, with the submission deadline set for 22nd March 2021. This contract has a total value of £2.5 million and is anticipated to span approximately 11 years, with a possibility of extending for up to 10 years. The procurement will employ a Competitive Procedure with Negotiation, and interested parties can find further information online to register their interest and access the necessary documents.

This tender presents an excellent opportunity for financial institutions, particularly those with expertise in fund management and investment services. SMEs, especially those with a focus on housing developments or community benefit delivery, would find this contract fitting as it aims to support smaller housing projects that are often overlooked by mainstream developers. The successful fund manager will play a vital role in sourcing projects, conducting due diligence, and facilitating loan processes, making it crucial for potential bidders to be FCA accredited and experienced in managing similar funds.

## Notice

Cardiff Council is seeking to procure a FCA accredited fund manager / advisor on behalf of Cardiff Capital Region (CCR) to provide certain services and to manage the capital allocated under a 10 million GBP housing investment fund for the benefit of SME developers (developers with less than 250 employees) operating in the South East Wales region.

### Lot Information

Lot 1

Cardiff Capital Region City Deal is a 1.1bn GBP economic growth programme which was agreed in 2016 between UK Government, Welsh Government and ten local authorities in South East Wales (the "Region") to bring about significant economic growth in the Region through investment, upskilling, and improved physical and digital connectivity. The CCR local authorities are: Blaenau Gwent, Bridgend, Caerphilly, Cardiff Council, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen and Vale of Glamorgan. Work undertaken to date has demonstrated to CCR that a key challenge in the Region's housing market is the requirement for vital financing support for SME developers with less than 250 employees and turnover under 50 million EURO ("SMEs") that play a valuable role in local house-building for relatively small housing schemes that fall outside of the mainstream developers' line of sight. To address this, CCR is seeking to establish an initial 10 million GBP investment sub-fund to target the substantial number of SME controlled smaller sites in the Region and provide finance support to SME developers who are unable to proceed with developments due to a lack of available funding support, particularly for the required upfront costs in the delivery cycle (the "Fund"). The term of the Fund is anticipated to be 11 years (approximately 1 year bedding in period and 10 years of investment), with the possibility of an extension by CCR for further period(s) of up to 10 years. CCR reserves the right to increase value of its investment in the Fund over this period. The principal objectives of the Fund, investment products, investment criteria, eligibility criteria and target outputs are set out in the Investment Strategy which has been issued alongside this Contract Notice. CCR is seeking to commission an FCA accredited fund manager / adviser to, amongst other matters, help market the Fund, source a pipeline of projects, undertake due diligence on applicants and manage the capital allocated under the Fund on CCR's behalf. It is intended that CCR will hold the 10 million GBP which will be loaned directly by CCR to successful applicants upon the Fund Manager's formal recommendation and that a successful applicant will make repayments on the loan to CCR directly. As CCR is not itself a corporate vehicle, Cardiff Council shall hold and manage the allocated 10 million investment; and procure and enter into a services contract for fund management services in respect of the Fund on behalf of CCR. CCR anticipates that the duration of the fund manager's services contract will align with the duration of the Fund. It is anticipated the fund manager/adviser shall perform loan origination and servicing services alongside general services and reporting services which shall include (amongst other matters): (a) advice upon and finalisation of the Investment Strategy for the Fund; (b) marketing, promoting and securing a pipeline of suitable applicants; (c) reviewing applications and conducting due diligence on a applicant's suitability for the Fund; (d) making recommendations to CCR's investment board in respect of suitable applicants; (e) ongoing monitoring, scrutiny and management of investments made and any potential or actual risks arising and how these may be managed; and (f) fulfilling the role of a FCA accredited fund manager for the Fund. The Fund Manager should also have direct access to third party advisers (in-house or otherwise) (such as valuers and professional advisers) in order to provide the full scope of services on behalf of CCR. The full scope of services is set out in Fund Manager Services Contract which has been issued alongside this Contract Notice. CCR is now inviting suitably qualified organisations to submit a response to the standard selection questionnaire (SQ) for this contract opportunity. Details of where to obtain the SQ and other documentation being released at this stage can be found in Section I of this contract notice. Additional information: Please note the estimated value at is based on the maximum 21 year duration of services. CCR previously engaged with potential suppliers via a soft market testing exercise to discuss this opportunity (see OJEU PIN reference 2020/S 103-249508). The responses confirmed that the Fund was viable, there is a need for the Fund, and the market would be interested in the opportunity.

Options: See section 11.2.7 for details

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/003349-2021 |
| Notice type | Tender Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Selective |
| Procurement method details | Competitive procedure with negotiation |
| Tender suitability | Not specified |
| Awardee scale | Not specified |
| All stages | Tender |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 19 Feb 2021 |
| Submission deadline | 22 Mar 2021 |
| Future notice date | Not specified |
| Award date | Not specified |
| Contract period | Not specified |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £2,500,000 |
| Lots value | Not specified |
| Awards value | Not specified |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Active |
| Lots status | Active |
| Awards status | Not specified |
| Contracts status | Not specified |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | CARDIFF COUNCIL |
| Additional buyers | BLAENAU GWENT COUNTY BOROUGH COUNCIL; BRIDGEND COUNTY BOROUGH COUNCIL; CAERPHILLY COUNTY BOROUGH COUNCIL; MERTHYR TYDFIL COUNTY BOROUGH COUNCIL; MONMOUTHSHIRE COUNTY COUNCIL; NEWPORT CITY COUNCIL; RHONDDA CYNON TAF CBC; TORFAEN COUNTY BOROUGH COUNCIL; VALE OF GLAMORGAN COUNCIL |
| Locality | CARDIFF |
| Post town | Cardiff |
| Postcode | CF10 4UW |
| Country | Wales |
| ITL 1 | TLL Wales |
| ITL 2 | TLL5 South East Wales |
| ITL 3 | TLL52 Cardiff and Vale of Glamorgan |
| Local authority | Vale of Glamorgan |
| Electoral ward | Castleland |
| Westminster constituency | Vale of Glamorgan |
| Delivery location | TLL Wales |

## CPV Codes

### Divisions

- 66 - Financial and insurance services

### Codes

- 66000000 - Financial and insurance services
- 66100000 - Banking and investment services
- 66140000 - Portfolio management services

## Release History

- 19 Feb 2021 at 12:56 - Tender - Tender Notice - https://www.find-tender.service.gov.uk/Notice/003349-2021

## Notice URLs

- http://www.blaenau-gwent.gov.uk/
- http://www.bridgend.gov.uk
- http://www.caerphilly.gov.uk
- http://www.cardiff.gov.uk
- http://www.merthyr.gov.uk
- http://www.monmouthshire.gov.uk
- http://www.newport.gov.uk
- http://www.rctcbc.gov.uk/
- http://www.torfaen.gov.uk
- http://www.valeofglamorgan.gov.uk
- https://supplierlive.proactisp2p.com
- https://ted.europa.eu/udl?uri=TED:NOTICE:249508-2020:TEXT:EN:HTML
- https://www.sell2wales.gov.wales/Search/Search_Switch.aspx?ID=108369
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0272
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0273
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0275
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0276
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0277
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0278
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0347
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0417
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0422
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0498

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-02947d. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-02947d.json.