---
title: "3 Thames Road Newham - residential Agreement for Lease"
ocid: "ocds-h6vhtk-030575"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-030575"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-030575.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-030575.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "LONDON BOROUGH OF NEWHAM"
published: "2021-12-23"
---

# 3 Thames Road Newham - residential Agreement for Lease

Buyer: LONDON BOROUGH OF NEWHAM  
Current stage: Award  
OCID: ocds-h6vhtk-030575

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## Summary

The London Borough of Newham is seeking to engage a developer through a tender process for the "3 Thames Road Newham - residential Agreement for Lease". This procurement is part of the urban development construction work category, focusing on the construction of 161 residential units, which will include private rent, discount market rent, and London affordable rent options. The project is located at 3 Thames Road, Royal Docks, Newham E16 2EZ. The procurement method is classified as limited, with an award procedure that does not require prior publication of a call for competition. The successful developer will enter into a conditional 50-year lease agreement with the Council, ensuring the completion of development by an agreed longstop date, with significant financial implications including a premium of £8,200,000 and annual rent of £1,935,000.

This tender presents a valuable opportunity for businesses involved in construction and residential development, particularly those with capacity to deliver large-scale urban residential projects. Companies that specialise in multi-dwelling building construction, including those experienced in handling affordable housing requirements, are well-suited to compete in this initiative. Engaging in this project can help businesses expand their portfolios, particularly in the burgeoning London property market, and could lead to further contracts if the initial development meets the expectations of the London Borough of Newham.

## Notice

The Contracting Authority proposes to enter into an Agreement for Lease with a developer and a proposed landowner under which, if the developer develops 161 residential units (comprising a mixture of private rent, discount market rent and London affordable rent units) at 3 Thames Road, Newham by an agreed longstop date, the Contracting Authority will take a 50-year lease of the property, with an agreement to purchase the reversion at the end of the lease term.

### Lot Information

Lot 1

The Contracting Authority proposes to enter into an Agreement for Lease with a developer and a proposed landowner under which, if the developer develops 161 residential units (comprising a mixture of private rent, discount market rent and London affordable rent units) at 3 Thames Road, Newham by an agreed longstop date, the Contracting Authority will take a 50-year lease of the property, with an agreement to purchase the reversion at the end of the lease term. Additional information: The total value of the procurement referred in 11.1.7 above does not take account of inflationary rent increases during the 50 year lease term.

Options: The Contracting Authority will have an option to purchase the freehold reversion from the landlord for PS1, at the end of the 50-year term of the Lease. The landlord will also be able to require the Contracting Authority to purchase the freehold reversion for PS1, at the end of the 50-year term of the Lease.

### Procurement Information

The Contracting Authority (CA) proposes entering into a conditional agreement for lease (AfL) with R Blue Regen TR Limited (Developer), Reef Estates Limited (Guarantor), and Pension Insurance Corporation Plc (proposed Landowner, a pension fund which will own the Site). Under the AfL, if the Developer develops 161 residential units (the Development, a mixture of private rent, discount market rent (DMR), and London affordable rent units) at 3 Thames Road, Newham (Site) by a longstop date, CA will take a 50-year lease of the Site, acquiring the reversion on lease expiry. The AfL will be conditional on the Landowner completing Site acquisition, and on a resolution for supplemental planning consent for intermediate affordable homes to be used as DMR homes. The AfL won't require the Developer to carry out the Development, although it specifies that if the Developer starts the Development, it mustn't depart from a specification in the AfL. If the Developer doesn't complete the Development by the agreed longstop, or departs from the AfL specification, CA can terminate the AfL and not take the Lease, or still take the Lease. If the Developer practically completes the Development by an agreed longstop, the supplemental planning consent having been issued and in place for an 8-week lead-in period, CA takes the Lease. CA pays an PS8,200,000 premium (Premium) to the Landowner, on Lease grant, then PS1,935,000 annual rent (index-linked). Under a separate funding agreement between the Landowner and the Developer, the Landowner will fund the Development, including paying a profit to the Developer if the Developer completes the Development and CA takes the Lease. If the Developer fails to complete the Development or becomes insolvent, the funding agreement will give the Landowner funder's rights to step into the AfL and complete the Development. If the Landowner then completes the Development by a longstop, CA still takes the Lease. If the Landowner steps into the AfL as above, CA will, as a deposit, pay an advance payment of the Premium to the Landowner. If the Landowner steps into the AfL but doesn't finish the Development by a longstop, and/or departs from the AfL specification, CA can terminate the AfL and not take the Lease, the Landowner repaying the Premium to CA, or CA can still take the Lease. For the above reasons, CA considers that the AfL does not constitute a public works contract under the Public Contracts Regulations 2015, but is an exempt land transaction.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/032254-2021 |
| 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 | 23 Dec 2021 |
| Submission deadline | Not specified |
| Future notice date | Not specified |
| Award date | 2 Nov 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 | £104,950,000 |

## Status

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

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | LONDON BOROUGH OF NEWHAM |
| Locality | LONDON |
| Post town | East London |
| Postcode | E16 2QU |
| Country | England |
| ITL 1 | TLI London |
| ITL 2 | TLI4 Inner London - East |
| ITL 3 | TLI41 Hackney and Newham |
| Local authority | Newham |
| Electoral ward | Royal Albert |
| Westminster constituency | West Ham and Beckton |
| Delivery location | TLI41 Hackney and Newham |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 3 |
| Supplier names | PENSION INSURANCE; R BLUE REGEN TR; REEF ESTATES |

## CPV Codes

### Divisions

- 45 - Construction work

### Codes

- 45211300 - Houses construction work
- 45211340 - Multi-dwelling buildings construction work
- 45211341 - Flats construction work
- 45211350 - Multi-functional buildings construction work
- 45211360 - Urban development construction work
- 45215214 - Residential homes construction work

## Release History

- 23 Dec 2021 at 16:09 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/032254-2021

## Notice URLs

- http://www.reefgroup.co.uk/contact
- https://www.judiciary.uk/you-and-the-judiciary/going-to-court/high-court/
- https://www.newham.gov.uk
- https://www.pensioncorporation.com/
- https://www.reefgroup.co.uk/contact

## 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-030575. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-030575.json.