---
title: "Basildon Hospital main entrance and retail facility"
ocid: "ocds-h6vhtk-02cb74"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-02cb74"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-02cb74.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-02cb74.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "MID AND SOUTH ESSEX NHS FOUNDATION TRUST"
published: "2021-07-22"
---

# Basildon Hospital main entrance and retail facility

Buyer: MID AND SOUTH ESSEX NHS FOUNDATION TRUST  
Current stage: Award  
OCID: ocds-h6vhtk-02cb74

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## Summary

The Basildon Hospital main entrance and retail facility tender, initiated by the Mid and South Essex NHS Foundation Trust, is currently complete and classified under the construction work category. The award for this contract, valued at £10,650,000, was made on 15 July 2021, with a further approval scheduled for 29 July 2021. The procurement method used was limited, following an award procedure without prior publication of a call for competition. The tender process involves leasing arrangements with Noviniti Dev Co 8 Ltd, where WHSmith will act as the initial tenant for the retail development located at Basildon Hospital, Essex.

This tender presents significant opportunities for businesses focused on construction and retail services, particularly those with capabilities in hospital-related works and retail facility enhancements. Companies that specialise in building construction, health facility improvement, and sustainable design could find a competitive advantage in this procurement. The structured leasing arrangements and long-term commitments offer stability and potential for ongoing collaboration, making it an attractive opportunity for established firms looking to expand their operational footprint in the healthcare sector.

## Notice

Mid and South Essex NHS Foundation Trust ("MSE") intends to enter into a series of leasing arrangements with Noviniti Dev Co 8 Ltd ("Noviniti") and WHSmith ("WHS") in respect of a retail development ("the Development") at Basildon Hospital, Essex ("the Hospital") with WHS as Noviniti's initial tenant and retail operator. MSE has structured the contractual arrangement as a land transaction exempt from the Public Contracts Regulations 2015 (PCR) and the Concession Contracts Regulations 2015 (CCR). Noviniti has an option to draw down a 35-year ground lease ("GL") of the site in exercise of an option agreement ("OA") with MSE. The GL has break clauses in favour of MSE after 2 years (so MSE can recover the site if the Development is not commenced) and 30 years from practical completion of the Development.

### Lot Information

Lot 1

MSE now intends to enter into a tripartite Agreement for Underlease with Noviniti and WHS. In this agreement WHS commits to accepting the grant of a 15-year underlease (with rent obligations to Noviniti) on practical completion of the retail facilities. MSE (as head landlord) will have insurance obligations owed to WHS and a repairing covenant for the retail facilities. MSE may step-in to take the underlease if WHS fails to enter the underlease at practical completion. MSE may enter an Overriding Lease (to become WHS's landlord) if WHS becomes insolvent or defaults on its Underlease, in order to maintain the rental payments to Noviniti. MSE may enter a 15-year Reversionary Lease (with rent obligations to Noviniti) to take effect from the expiry of WHS's underlease. MSE may instead direct these leases be granted to an alternate operator if MSE guarantees rent. There will be some office space and common parts delivered as part of the scheme. Additional information: Please see Voluntary Transparency Notice of 22.3.2021 for details of option agreement and ground lease https://www.find-tender.service.gov.uk/Notice/005723-2021

### Procurement Information

MSE 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 GL can only be drawn down by Noviniti when acceptable planning permission is secured. As the planning application is an agreed document under the OA and defines the permitted alterations under the Licence for Alterations the Trust has had input to the details of the Development. On execution of the GL Noviniti is not obliged to undertake the Development. Once Noviniti serves notice electing to carry out the Development this engages enforceable obligations for Noviniti to carry out and complete the Development for MSE under the terms of the Agreement for Lease and the Licence for Alterations. Under a separate 15 year lease between MSE and WHS of additional space at the Hospital, MSE secures an annual income of rent from the separate lease and a turnover share from retail carried out in the additional space and at the Development. At practical completion MSE guarantees to meet the payment and performance obligations of WHS for the 15-year term of the Operator Lease; any alternate tenant it nominates to take the Reversionary Lease; any other costs which Noviniti may incur in relation to the Development for 30 years. The guarantee protects Noviniti's investment where MSE does not itself enter the Reversionary Lease, Step-In Lease and/or Overriding Lease. MSE holds that there is no works contract for lack of an enforceable obligation and Noviniti is able to "walk away" from having to deliver the Development and/or MSE is able to award the Development on the basis that Noviniti has an exclusive right to the land conferred under the GL pursuant to Regulation 32(2)(b)(iii) Public Contracts Regulations 2015. To the extent that the overall scheme could be considered a mixed contract of works and a land transaction, MSE holds that the land element is the main object of the arrangement MSE holds that there is no works concession contract as there is insufficient transfer of operating risk to Noviniti in exploiting the works.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/017414-2021 |
| 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 | 22 Jul 2021 |
| Submission deadline | Not specified |
| Future notice date | Not specified |
| Award date | 14 Jul 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 | £10,650,000 |

## Status

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

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | MID AND SOUTH ESSEX NHS FOUNDATION TRUST |
| Locality | BASILDON |
| Post town | Southend-on-Sea |
| Postcode | SS16 5NL |
| Country | England |
| ITL 1 | TLH East (England) |
| ITL 2 | TLH3 Essex |
| ITL 3 | TLH37 Essex Thames Gateway |
| Local authority | Basildon |
| Electoral ward | Langdon Hills |
| Westminster constituency | South Basildon and East Thurrock |
| Delivery location | TLH37 Essex Thames Gateway |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | NOVINITI DEV CO 8 |

## CPV Codes

### Divisions

- 45 - Construction work
- 55 - Hotel, restaurant and retail trade services

### Codes

- 45000000 - Construction work
- 45214710 - Entrance hall construction work
- 45215100 - Construction work for buildings relating to health
- 45215140 - Hospital facilities construction work
- 55900000 - Retail trade services

## Release History

- 22 Jul 2021 at 17:48 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/017414-2021

## Notice URLs

- https://www.find-tender.service.gov.uk/Notice/005723-2021
- https://www.mse.nhs.uk

## 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-02cb74. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-02cb74.json.