--- title: "North East LEP - Fund Manager for Commercial Property Investment Fund" ocid: "ocds-h6vhtk-02b33a" canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-02b33a" markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-02b33a.md" json_url: "https://d3tenders.com/contract/ocds-h6vhtk-02b33a.json" source: "Find A Tender Service" current_stage: "Tender" buyer: "NORTH TYNESIDE COUNCIL" published: "2021-07-27" --- # North East LEP - Fund Manager for Commercial Property Investment Fund Buyer: NORTH TYNESIDE COUNCIL Current stage: Tender OCID: ocds-h6vhtk-02b33a [View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-h6vhtk-02b33a) [Download OCDS JSON](https://d3tenders.com/contract/ocds-h6vhtk-02b33a.json) ## Summary The North Tyneside Council is currently conducting a procurement process for a Fund Manager to support the North East Local Enterprise Partnership (LEP) in managing its Commercial Property Investment Fund (CPIF). This tender, titled “North East LEP - Fund Manager for Commercial Property Investment Fund”, falls under the industry category of financial and insurance services. The procurement is at the 'Tender' stage, and interested organisations must submit their Selection Questionnaires by 12:00 noon on 26 August 2021, with the process involving competitive dialogue allowing for discussions between bidders and the contracting authority. This procurement presents a significant opportunity for businesses engaged in commercial property management, financial services, and investment consultancy to expand their operations within the North East region. Companies that specialise in property development, regeneration projects, and investment services, particularly those with experience in managing public funds, will find this tender particularly relevant. The CPIF aims to finance near-viable property projects and will have a substantial initial value of £50 million, making it an attractive opportunity to secure long-term contracts and generate substantial returns over its estimated 15-year funding cycle. ## Notice On behalf of the North East LEP (see section VI.3 of this notice), North Tyneside Council (the "Council") is conducting a procurement of a fund manager in respect of the North East LEP's Commercial Property Investment Fund ("CPIF") to unlock development opportunities in the region and to generate returns to be reinvested in future development funding opportunities. The CPIF will be an investment fund that finances almost viable property and regeneration projects throughout the North East LEP area in pursuit of Strategic Economic Plan objectives. The fund manager will have responsibility for finding and executing deals and managing the CPIF portfolio and will be expected to manage the CPIF for the duration of the funding cycle (currently estimated to be at least 15 years). Further details are contained in sections II.2.4 as well as a preliminary market consultation document available at the address in section I.3 of this notice. ### Lot Information Lot 1 II.1.1) Description of the procurement (maximum 4,000 characters): (nature and quantity of works, supplies or services or indication of needs and requirements) The procurement will involve a competitive dialogue procedure in which bidders may be invited to engage in dialogue with the Council and North East LEP. The Selection Questionnaire for the procurement is available to view and download at: https://procontract.due-north.com/. Bidders are required to submit their Selection Questionnaire in the procurement portal by no later than 12:00 noon on 26 August 2021 . For further information please see the Selection Questionnaire. Full details of the Council and the North East LEP's minimum requirements will be set out in the ITT. The CPIF will be a revolving fund accompanied by separate pot(s) offering incentive funding to address market failure. It is estimated that the CPIF will initially be comprised of: 1) PS35 million in senior or mezzanine debt; and 2) PS15 million in incentive funding. The CPIF is estimated to have a 15-year funding cycle. Subject to performance and the provision of further public funding, the CPIF will have the potential to increase in value and be extended for a further 5-year period (i.e. 20 years in total). The contract will also allow for early termination of the CPIF should it not achieve its expected levels of return (subject to a performance review in year 6, following the conclusion of the first funding cycle). Revenue for the fund manager's services will be paid over the term of the contract and will be based on arrangement/exit fees charged in the administration of the CPIF. For value estimation purposes, North East LEP estimates that the PS35 million senior or mezzanine debt will be utilised three times over the course of the 15-year funding cycle. Total senior or mezzanine debt over the initial term of the CPIF is therefore expected to be PS105 million. This procurement is intended to cover the initial value and scope of the fund together with any increases in the scale of the CPIF as a result of additional fund resources being secured. Interested organisations should use this information to aid in their estimation of the revenue likely to be generated. The services anticipated to be required by the North East LEP for the fund manager services are summarised below (though confirmation of the final expected scope will be set out in the ITT): 1. commercial property management, development and regeneration; and 2. financial and investment services. At this stage, the above list of services is indicative only and contains the broad categorisation of services rather than particulars. Bidders should assume that the services actually required will broadly be within the scope of services listed above but will also include extensions to related or ancillary services within each categorisation. The actual scope of services required may be narrower than that set out above. The services shall also include any services required by the CPIF, which the fund manager will subsequently procure. The legal structure of the CPIF will contain a mechanism to allow any body governed by public law and situated within the North East LEP boundary area to access the fund manager. Full details of the proposed legal structure of the CPIF will be set out in the ITT and draft contract documents. Following feedback from interested organisations during preliminary market consultation, and to help to ensure that sufficient interest in the contract will be generated, the services being procured will not be divided into separate lots. ## Key Details | Field | Value | | --- | --- | | Publication source | Find A Tender Service | | Latest notice | https://www.find-tender.service.gov.uk/Notice/017810-2021 | | Notice type | Planning Notice | | Procurement type | Standard | | Procurement category | Services | | Procurement method | Selective | | Procurement method details | Competitive dialogue | | Tender suitability | Not specified | | Awardee scale | Not specified | | All stages | Planning, Tender | ## Dates | Field | Value | | --- | --- | | Publication date | 27 Jul 2021 | | Submission deadline | 26 Aug 2021 | | Future notice date | 30 Jun 2021 | | Award date | Not specified | | Contract period | Not specified | | Recurrence | Not specified | ## Values | Field | Value | | --- | --- | | Tender value | Not specified | | 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 | NORTH TYNESIDE COUNCIL | | Locality | NORTH TYNESIDE | | Post town | Newcastle upon Tyne | | Postcode | NE27 0BY | | Country | England | | ITL 1 | TLC North East (England) | | ITL 2 | TLC4 Northumberland, Durham and Tyne & Wear | | ITL 3 | TLC43 Tyneside | | Local authority | North Tyneside | | Electoral ward | Shiremoor | | Westminster constituency | Cramlington and Killingworth | | Delivery location | TLC North East (England) | ## CPV Codes ### Divisions - 66 - Financial and insurance services - 70 - Real estate services ### Codes - 66000000 - Financial and insurance services - 66100000 - Banking and investment services - 70112000 - Development of non-residential real estate - 70332200 - Commercial property management services ## Release History - 27 Jul 2021 at 12:48 - Tender - Tender Notice - https://www.find-tender.service.gov.uk/Notice/017810-2021 - 20 May 2021 at 13:42 - Planning - Planning Notice - https://www.find-tender.service.gov.uk/Notice/011208-2021 ## Notice URLs - http://www.northtyneside.gov.uk/ - https://procontract.due-north.com/ - https://procontract.due-north.com/Advert/Index?advertId=312fd50b-b0b8-eb11-810c-005056b64545 - https://supplierhelp.due-north.com/ ## 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-02b33a. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-02b33a.json.