---
title: "St David's Hall"
ocid: "ocds-kuma6s-132101"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-kuma6s-132101"
markdown_url: "https://d3tenders.com/contract/ocds-kuma6s-132101.md"
json_url: "https://d3tenders.com/contract/ocds-kuma6s-132101.json"
source: "Sell2Wales"
current_stage: "Award"
buyer: "CARDIFF COUNCIL"
published: "2023-06-05"
---

# St David's Hall

Buyer: CARDIFF COUNCIL  
Current stage: Award  
OCID: ocds-kuma6s-132101

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## Summary

The Cardiff Council is awarding a tender for St David's Hall in Cardiff city centre to Academy Music Group Limited. The proposed agreement involves a 45-year lease of the venue for a peppercorn rent to AMG, requiring them to repair and maintain the venue, operate it as a commercial enterprise, and continue the classical music programme. The procurement method is a limited award procedure without prior publication, structured as a lease rather than a traditional acquisition activity.

This tender represents a significant opportunity for businesses in the entertainment and venue management industry to compete for managing the operations of St David's Hall. Companies with experience in operating cultural venues, providing entertainment services, and managing commercial enterprises would be well-suited to compete for this tender. Understanding the obligations related to maintaining the venue, delivering a diverse programme of entertainment events, and complying with industry standards are crucial for successful participation in this procurement process.

## Notice

This notice relates to a proposed arrangement between the Cardiff Council ("Council") and Academy Music Group ("AMG") in respect of St David's Hall ("Venue") in Cardiff city centre. The proposed arrangement will involve the grant of a 45 year lease of the Venue at a peppercorn rent to AMG. Under the lease AMG will be obliged to repair and maintain the Venue, ensure its long-term future and that it remains open for the benefit of the people and City of Cardiff. The Council may also receive a share of Venue profits over the lifetime of the lease. AMG, as tenant will operate the Venue as an independent commercial enterprise in accordance with the lease requirements. The lease will have positive obligations imposed on AMG to deliver a range of services in operating the Venue including continuing the classical programme as described in more detail below. Continued below in II.2.4) Short description.

### Lot Information

Lot 1

Continued from II.1.4) The Council will also enter into a Business Sale Agreement ("BSA") with AMG to enable service handover and continuity at the Venue. This will transfer the "book" of existing events and the assets of the business at the Venue to AMG for nil value. It will also transfer the benefit of relevant consents to operate the business. All current Venue staff are expected to TUPE transfer to AMG. The lease obliges AMG to manage and repair (in a manner that AMG determines) a list of defects. The cost to bring the Venue back to its original condition is estimated at 38mGBP. AMG will be responsible for maintaining the condition of the building and would have flexibility to invest in and improve the Venue. The lease requires (amongst other normal terms) AMG to keep the Venue open in a safe and operational condition in line with industry standards and as required by all statutory and licensing requirements. The estimated value in II.1.7 and V.2.4 represents the Council's assessment of the lower end of the potential net profit that could be achieved for a venue of this nature over a 45 year term. The potential higher end net profit over the 45 year term could be in the region of 67mGBP. These values are based on the Council's projections of total revenues that may be achieved over the maximum 45 years and assumes a 5-10% net profit (which is a common range in this industry). The actual value of the opportunity (and potential revenues and profit turns) will depend on many commercial factors (including but not limited to) the performance and success of the tenant's business and market conditions. Continued below in VI.3) Additional Information.

### Procurement Information

The Council has structured the arrangements as a grant of a lease which does not involve an acquisition activity governed by the Public Contracts Regulations 2015 (as amended) or Concession Contracts Regulations 2016. The Council has obtained valuation advice in respect of the proposed disposal and will grant the lease for peppercorn rent. The market value of the rent acknowledges and takes into account the substantial building liability and remedial works that AMG will be required to take on as tenant of the Venue. The lease does oblige AMG to address defects, repair and maintain the Venue, but these are incidental and ancillary to the lease arrangements because: (i) the estimated value of the works at 38mGBP is small compared to the estimate potential value of the operator opportunity over 45 years of the lease; (ii) the main purpose of the transaction is to transfer the Venue to an independent operator and not the securing of the works; and (iii) AMG has a broad discretion to determine the manner, timing and specification of the works as a tenant of the Venue. Furthermore, it is not practical for the works to be severable to be delivered by an alternative contractor given AMG's occupation and operation of the Venue. If AMG does not manage and repair the defects so that the Venue is safe and operational, the Council can terminate the lease or procure the delivery of those works at AMG's cost. AMG may voluntarily elect to carry out other works (including alteration upgrades, enhancements and other repairs and maintenance as may be needed) at the Venue in accordance with its own requirements. The lease also requires AMG to keep the Venue open in a safe and operational condition in line with industry standards and as required by all statutory and licensing requirements. This is a standard commercial tenant requirement and does not amount to a services contract under the procurement rules. The lease also requires AMG to maintain the classical music programme at the Venue and to provide the Services for those events and accommodate a community programme. Continued in VI.4.3).

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Sell2Wales |
| Latest notice | https://www.sell2wales.gov.wales/search/search_switch.aspx?ID=132101 |
| Notice type | OJEU - F15 - Voluntary Ex Ante Transparency Notice |
| Procurement type | Standard |
| Procurement category | Services |
| 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 | 5 Jun 2023 |
| Submission deadline | Not specified |
| Future notice date | Not specified |
| Award date | 16 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 | £45,000,000 |

## Status

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

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | CARDIFF COUNCIL |
| Locality | CARDIFF |
| Post town | Cardiff |
| Postcode | CF10 4UW |
| Country | Wales |
| ITL 1 | TLL Wales |
| ITL 2 | TLL5 South East Wales |
| ITL 3 | TLL52 Cardiff and Vale of Glamorgan |
| Local authority | Cardiff |
| Electoral ward | Butetown |
| Westminster constituency | Cardiff South and Penarth |
| Delivery location | TLL22 Cardiff and Vale of Glamorgan |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | ACADEMY MUSIC GROUP |

## CPV Codes

### Divisions

- 45 - Construction work
- 55 - Hotel, restaurant and retail trade services
- 70 - Real estate services
- 75 - Administration, defence and social security services
- 79 - Business services: law, marketing, consulting, recruitment, printing and security
- 90 - Sewage, refuse, cleaning and environmental services
- 92 - Recreational, cultural and sporting services

### Codes

- 45000000 - Construction work
- 55120000 - Hotel meeting and conference services
- 55130000 - Other hotel services
- 55330000 - Cafeteria services
- 55400000 - Beverage-serving services
- 55410000 - Bar management services
- 55500000 - Canteen and catering services
- 55520000 - Catering services
- 70220000 - Non-residential property renting or leasing services
- 70330000 - Property management services of real estate on a fee or contract basis
- 70332000 - Non-residential property services
- 70332200 - Commercial property management services
- 75241000 - Public security services
- 79710000 - Security services
- 79950000 - Exhibition, fair and congress organisation services
- 79951000 - Seminar organisation services
- 79952000 - Event services
- 79952100 - Cultural event organisation services
- 79953000 - Festival organisation services
- 79956000 - Fair and exhibition organisation services
- 79993000 - Building and facilities management services
- 79993100 - Facilities management services
- 90911200 - Building-cleaning services
- 92000000 - Recreational, cultural and sporting services
- 92300000 - Entertainment services
- 92312100 - Theatrical producers', singer groups', bands' and orchestras' entertainment services
- 92312120 - Singer group entertainment services
- 92312130 - Band entertainment services
- 92312140 - Orchestral entertainment services

## Release History

- 5 Jun 2023 at 00:00 - Award - OJEU - F15 - Voluntary Ex Ante Transparency Notice - https://www.sell2wales.gov.wales/search/search_switch.aspx?ID=132101

## Documents

- https://www.sell2wales.gov.wales/search/show/search_view.aspx?ID=JUN439743
  St David's Hall - This notice relates to a proposed arrangement between the Cardiff Council ("Council") and Academy Music Group ("AMG") in respect of St David's Hall ("Venue") in Cardiff city centre. The proposed arrangement will involve the grant of a 45 year lease of the Venue at a peppercorn rent to AMG. Under the lease AMG will be obliged to repair and maintain the Venue, ensure its long-term future and that it remains open for the benefit of the people and City of Cardiff. The Council may also receive a share of Venue profits over the lifetime of the lease. AMG, as tenant will operate the Venue as an independent commercial enterprise in accordance with the lease requirements. The lease will have positive obligations imposed on AMG to deliver a range of services in operating the Venue including continuing the classical programme as described in more detail below. Continued below in II.2.4) Short description.

## Notice URLs

- https://api.sell2wales.gov.wales/v1?lang=cy/Notice?id=ocds-kuma6s-132101
- https://www.cardiff.gov.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-kuma6s-132101. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-kuma6s-132101.json.