---
title: "Queen Alexandra Hospital, North Car Park, MSCP"
ocid: "ocds-h6vhtk-02c113"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-02c113"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-02c113.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-02c113.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "PORTSMOUTH HOSPITALS UNIVERSITY NHS TRUST"
published: "2021-06-28"
---

# Queen Alexandra Hospital, North Car Park, MSCP

Buyer: PORTSMOUTH HOSPITALS UNIVERSITY NHS TRUST  
Current stage: Award  
OCID: ocds-h6vhtk-02c113

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## Summary

The Portsmouth Hospitals University NHS Trust has awarded a contract for the construction of a multi-storey car park at Queen Alexandra Hospital in Portsmouth. The project falls under the construction works category and is valued between £11.3 million and £13.2 million, with an active contract signed on 4 May 2021. The procurement process was initiated without a prior call for competition, considering it qualifies for exemptions under the Public Contracts Regulations 2015. The relevant procurement stage is currently complete, with the contract terms involving a 35-year ground lease to Noviniti Dev Co 6 Ltd, which will be operating the car park through Engie Services Limited as the initial tenant.

This contract presents significant opportunities for businesses within the construction, car park management, and related service sectors, particularly for those experienced in large-scale development and public-private partnerships. Companies that specialize in construction works, as well as those that can provide long-term operational services for car park management, would find this tender particularly suitable. Engaging in such projects can help enhance visibility, foster partnerships, and ultimately contribute to business growth within public contracting arenas.

## Notice

Portsmouth Hospitals University NHS Trust ("PHUT") intends to enter into a series of leasing arrangements with Noviniti Dev Co 6 Ltd ("Noviniti") and Engie Services Limited ("Engie") in respect of a new multi-storey car park development ("the Development") at Queen Alexandra Hospital, Portsmouth ("the Hospital") with Engie as Noviniti's initial tenant and the car park operator. The contractual arrangements are structured as a land transaction exempt from the Public Contracts Regulations 2015 (PCR) and the Concession Contracts Regulations 2015 (CCR). There is a Deed of Covenant ("the Deed") between the Trust and Engie requiring Engie to operate the car park. Noviniti has drawn down a 35-year ground lease of the site in exercise of an option agreement with the PHUT.

### Lot Information

Lot 1

PHUT now intends to enter into a tripartite Agreement for Underlease with Noviniti and Engie. In this agreement Engie commits to accepting the grant of an 18-year underlease (with rent obligations to Noviniti) on practical completion of the car park. PHUT (as head landlord) will have insurance obligations owed to Engie and a repairing covenant for the car park. PHUT will be required to step-in to take the underlease if Engie fails to enter the underlease at practical completion. PHUT will also be required to enter an Overriding Lease (to become Engie's landlord) if Engie becomes insolvent or defaults on its Underlease in order to maintain the rental payments to Noviniti. PHUT will enter a 12-year Reversionary Lease (with rent obligations to Noviniti) to take effect from the expiry of Engie's underlease. Additional information: Please see Voluntary Transparency Notice of 23.2.2021 for details of option agreement and ground lease https://www.find-tender.service.gov.uk/Notice/003619-2021

### Procurement Information

PHUT considers that the arrangements fall within the land exemption under Regulation 10(1)(a) Public Contracts Regulations 2015 and/or Regulation 10(11)(a) Concessions Contracts Regulations 2015. The Ground Lease can only be drawn down by Noviniti when there is an acceptable planning permission secured. As the planning application is an agreed document under the option agreement (and which will also define the permitted alterations under the Licence for Alterations) the Trust has had input in determining the details of the Development to be delivered on the site. The Ground Lease is subject to break clauses in favour of PHUT after 2 years (to enable PHUT to recover the site if the Development is not commenced) and again at 30th anniversary of practical completion of the Development. On execution of the Ground Lease Noviniti is not obliged to undertake the Development. Once Noviniti has served notice in electing to carry out the Development then this will engage enforceable obligations for Noviniti to carry out and complete the development for PHUT under the terms of the tripartite Agreement for Lease and also the Licence for Alterations granted by PHUT to Noviniti. However, as Noviniti is under no obligation to serve notice to elect to carry out the works PHUT considers that no public works contract arises for lack of an enforceable obligation and Noviniti is able to "walk away" from having to deliver the Development. Under a Deed of Covenant between PHUT and Engie, Engie have obligations to open the car park for 24 hours per day every day for each year of the contractual term; apply and collect tariffs and enforcement charges; and apply the car parking policy specified by PHUT. PHUT will secure an annual income relating to the amount by which the rental receipts from the car park operator exceed the total of rental payments to Noviniti under the terms of the underlease, Engie's operator amount (covering costs and an operator margin) and Engie's gainshare amount. If there is a shortfall in the annual income collected to meet yearly rent due from Engle to Noviniti then PHUT would pay Engie an amount equal to the shortfall value. The contractual term is co-terminus with the 18 year underlease from Noviniti to Engie. PHUT considers that if the Deed of Covenant is a services concession contract to operate a car park then its estimated value to Engie over the contractual term would be below the CCR threshold and therefore the CCR would not apply to the Deed.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/014752-2021 |
| Notice type | Award Notice |
| Procurement type | Standard |
| Procurement category | Works |
| Procurement method | Limited |
| Procurement method details | Award procedure without prior publication of a call for competition |
| Tender suitability | Not specified |
| Awardee scale | Large |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 28 Jun 2021 |
| Submission deadline | Not specified |
| Future notice date | Not specified |
| Award date | 3 May 2021 |
| Contract period | Not specified |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | Not specified |
| Contracts value | £13,560,000 |

## Status

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

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | PORTSMOUTH HOSPITALS UNIVERSITY NHS TRUST |
| Locality | PORTSMOUTH |
| Post town | Portsmouth |
| Postcode | PO6 3LY |
| Country | England |
| ITL 1 | TLJ South East (England) |
| ITL 2 | TLJ3 Hampshire and Isle of Wight |
| ITL 3 | TLJ31 Portsmouth |
| Local authority | Portsmouth |
| Electoral ward | Cosham |
| Westminster constituency | Portsmouth North |
| Delivery location | TLJ31 Portsmouth |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | NOVINITI DEV CO 6 |

## CPV Codes

### Divisions

- 45 - Construction work
- 98 - Other community, social and personal services

### Codes

- 45000000 - Construction work
- 45213312 - Car park building construction work
- 98351000 - Car park management services

## Release History

- 28 Jun 2021 at 17:21 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/014752-2021

## Notice URLs

- http://www.porthosp.nhs.uk
- https://www.find-tender.service.gov.uk/Notice/003619-2021

## 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-02c113. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-02c113.json.