---
title: "Queen Alexandra Hospital, ground leases of land at the Main Entrance and North Entrance"
ocid: "ocds-h6vhtk-039443"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-039443"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-039443.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-039443.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "PORTSMOUTH HOSPITALS UNIVERSITY NHS TRUST"
published: "2023-01-03"
---

# Queen Alexandra Hospital, ground leases of land at the Main Entrance and North Entrance

Buyer: PORTSMOUTH HOSPITALS UNIVERSITY NHS TRUST  
Current stage: Award  
OCID: ocds-h6vhtk-039443

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## Summary

Portsmouth Hospitals University NHS Trust is procuring ground leases of land at the Queen Alexandra Hospital in Portsmouth for a retail use and lecture theatre and clinical space development with Noviniti Dev Co 7 Limited. The procurement is in the Award stage with an estimated value range of £13.2m to £46.5m. Noviniti has already secured two 46-year ground leases, allowing PHUT break clauses to protect its interests throughout the development process.

This tender presents opportunities for construction companies specialising in commercial buildings to participate in the development of retail and healthcare facilities. With a focus on works procurement, businesses with expertise in construction, retail operations, and property management would be well-suited to compete in this limited procurement procedure. The procurement method rationale highlights that the arrangements fall under land exemptions, providing scope for tailored and collaborative development opportunities.

## Notice

Portsmouth Hospitals University NHS Trust ("PHUT") intends to enter into a series of leasing agreements with Noviniti Dev Co 7 Limited ("Noviniti") in respect of a new retail use and lecture theatre and clinical space development ("the Development") at land at the Main Entrance and North Entrance at the Queen Alexandra Hospital, Portsmouth ("the Hospital") with Compass as Noviniti's initial tenant and retail operator. The contractual arrangements are structured as a land transaction exempt from the Public Contracts Regulations 2015 ("PCR") and the Concession Contracts Regulations 2016 ("CCR"). Noviniti has drawn down two 46 -year ground leases ("GL") of the site in exercise of an option agreement with PHUT. The GLs have break clauses in favour of PHUT after 2 years (so PHUT can recover the site if the Development is not commenced); after 6 years (so PHUT can recover the site if only one of the two entrances is completed) and 40 years from practical completion of the Development.

### Lot Information

Lot 1

PHUT intends to enter into an Agreement for Underlease in respect of the Main Entrance & North Entrance sites with Noviniti Dev Co 7 Ltd ("Noviniti") and Compass Contract Services (UK) Limited ("Compass"). Compass commits to accepting the grant of two 15 year underleases (with rent obligations to Noviniti) on practical completion ("PC") of the retail space. PHUT (as head landlord) will have insurance obligations owed to Compass and a repairing covenant for the retail space. PHUT will be required to step-in to take the underlease if Compass fails to do so on PC. PHUT must enter into an Overriding Lease (to become Compass' landlord) if Compass becomes insolvent or defaults on its Underlease, in order to maintain the rental payments to Noviniti. PHUT will enter into a 25-year Reversionary Lease (with rent obligations to Noviniti) to take effect from expiry of Compass' underlease. Some education space, research and development space and common parts will be delivered as part of the scheme.

### 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 GLs were only drawn down by Noviniti when certificates for lawful development had been secured. As the certificates for lawful development are referenced under the OA and must be complied with when carrying out the permitted alterations under the Licences 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 PHUT under the terms of the Agreement for Lease and the Licence for Alterations. 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 Potential Development.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/000009-2023 |
| Notice type | Tender 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 | Tender, Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 3 Jan 2023 |
| Submission deadline | Not specified |
| Future notice date | Not specified |
| Award date | 20 Dec 2022 |
| Contract period | Not specified |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | Not specified |
| Contracts value | £13,200,000 |

## 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 | TLJ South East (England) |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | NOVINITI DEV CO 7 |

## CPV Codes

### Divisions

- 45 - Construction work

### Codes

- 45000000 - Construction work
- 45213100 - Construction work for commercial buildings

## Release History

- 3 Jan 2023 at 08:59 - TenderUpdate - Tender Notice - https://www.find-tender.service.gov.uk/Notice/000009-2023
- 23 Dec 2022 at 15:50 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/036583-2022

## Notice URLs

- http://www.porthosp.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-039443. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-039443.json.