--- title: "Offshore Wind Leases Market Valuation - Special Valuation Exercise" ocid: "ocds-r6ebe6-0000697992" canonical_url: "https://d3tenders.com/contract/?ocid=ocds-r6ebe6-0000697992" markdown_url: "https://d3tenders.com/contract/ocds-r6ebe6-0000697992.md" json_url: "https://d3tenders.com/contract/ocds-r6ebe6-0000697992.json" source: "Public Contracts Scotland" current_stage: "Planning" buyer: "CROWN ESTATE SCOTLAND" published: "2022-06-22" --- # Offshore Wind Leases Market Valuation - Special Valuation Exercise Buyer: CROWN ESTATE SCOTLAND Current stage: Planning OCID: ocds-r6ebe6-0000697992 [View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-r6ebe6-0000697992) [Download OCDS JSON](https://d3tenders.com/contract/ocds-r6ebe6-0000697992.json) ## Summary Crown Estate Scotland is currently in the planning stage of a procurement process for a special valuation exercise related to offshore wind leases. The contract, titled "Offshore Wind Leases Market Valuation - Special Valuation Exercise," is based in Edinburgh, UK, and is intended to ensure that rental mechanisms reflect current market values as tenants transition from Option Agreements to Lease Agreements. Interested parties should respond to the questions outlined in the provided documentation by 15 July 2022. The value of this procurement is estimated at £35,000, and further communication regarding the procurement will occur on 29 July 2022. This tender presents significant opportunities for businesses specialising in valuation services, particularly those experienced in RICS Red Book Valuations and forward-looking financial modelling for energy projects. Companies equipped to offer inflation forecasting and comprehensive market analyses would be well-suited to participate. Engaging in this process could allow businesses to strengthen their relationships within the renewable energy sector and potentially secure further contracts with Crown Estate Scotland and other stakeholders in the offshore wind industry. ## Notice Crown Estate Scotland is currently in discussions with Offshore Wind tenants expecting to 'step through' from Option Agreements/Agreement to Lease (i.e., to enter the Lease). Where this 'step through' occurs more than 10 years after the initial option was granted, there is a need to ensure the rent mechanism contained in the Lease reflects 'market value'. When the rent mechanism is fee based (i.e., rent = fee (GBP/MWh) x output (MWh)), there is a need to revalue the original fee to ensure the new fee level represents market value ('Market Value Fee'), at the point when the option call occurs. These special valuation services support the setting of rental terms in a forward-looking manner and to allow CES to comply with its legislative obligations around achieving value ### Lot Information Lot 1 This process presents practical challenges for both CES and tenants seeking to progress the projects as there is a requirement to understand the Market Value Fee in advance of the point of the Option call. An early understanding of the Market Value Fee is helpful to both parties in progressing the project and the Option call preparations. This PIN is seeking to understand views on valuation of a Market Value Fee rental fee in advance of procuring valuation services. CES intends to seek services as follows: - RICS Red Book Valuation of Market Value Fee and accompanying report; - A forward-view approach (model or methodology) that can provide an estimate of Market Value Fee at the point in time in the future when the Option is called for development agreements. This could be up to 12 months following the initial valuation. We expect the forward-view approach to incorporate inflationary forecasts however there may be other considerations to be incorporated; and - Final review/confirmation of the valuation immediately prior to the point at which the Option is triggered. Crown Estate Scotland is considering the above approach in order to provide the necessary visibility to projects seeking to secure finance and ultimately achieve financial close, whilst still complying with a statutory duty to value the rental fee at the point the Option is called. ## Key Details | Field | Value | | --- | --- | | Publication source | Public Contracts Scotland | | Latest notice | https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=JUN452012 | | Notice type | PCS Notice - Website Prior Information Notice | | Procurement type | Standard | | Procurement category | Services | | Procurement method | Not Specified | | Procurement method details | Not specified | | Tender suitability | Not specified | | Awardee scale | Not specified | | All stages | Planning | ## Dates | Field | Value | | --- | --- | | Publication date | 22 Jun 2022 | | Submission deadline | Not specified | | Future notice date | 29 Jul 2022 | | Award date | Not specified | | Contract period | Not specified | | Recurrence | Not specified | ## Values | Field | Value | | --- | --- | | Tender value | £35,000 | | Lots value | Not specified | | Awards value | Not specified | | Contracts value | Not specified | ## Status | Field | Value | | --- | --- | | Tender status | Planned | | Lots status | Planned | | Awards status | Not specified | | Contracts status | Not specified | ## Buyer | Field | Value | | --- | --- | | Main buyer | CROWN ESTATE SCOTLAND | | Locality | EDINBURGH | | Post town | Edinburgh | | Postcode | EH3 9GL | | Country | Scotland | | ITL 1 | TLM Scotland | | ITL 2 | TLM1 East Central Scotland | | ITL 3 | TLM13 City of Edinburgh | | Local authority | City of Edinburgh | | Electoral ward | City Centre | | Westminster constituency | Edinburgh East and Musselburgh | | Delivery location | TLM Scotland | ## CPV Codes ### Divisions - 70 - Real estate services - 71 - Architectural, construction, engineering and inspection services ### Codes - 70000000 - Real estate services - 71355000 - Surveying services ## Release History - 22 Jun 2022 at 00:00 - Planning - PCS Notice - Website Prior Information Notice - https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=JUN452012 ## Documents - https://www.publiccontractsscotland.gov.uk/NoticeDownload/DownloadDocument.aspx?id=JUN452012&idx=1 22nd June 2022 - Overview of requirements and questions relating to the PIN - https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=JUN452012 Offshore Wind Leases Market Valuation - Special Valuation Exercise - Crown Estate Scotland is currently in discussions with Offshore Wind tenants expecting to 'step through' from Option Agreements/Agreement to Lease (i.e., to enter the Lease). Where this 'step through' occurs more than 10 years after the initial option was granted, there is a need to ensure the rent mechanism contained in the Lease reflects 'market value'. When the rent mechanism is fee based (i.e., rent = fee (GBP/MWh) x output (MWh)), there is a need to revalue the original fee to ensure the new fee level represents market value ('Market Value Fee'), at the point when the option call occurs. These special valuation services support the setting of rental terms in a forward-looking manner and to allow CES to comply with its legislative obligations around achieving value ## Notice URLs - http:// - http://crownestatescotland.com/ - https://api.publiccontractsscotland.gov.uk/v1/Notice?id=ocds-r6ebe6-0000697992 - https://www.publiccontractsscotland.gov.uk/ - https://www.publiccontractsscotland.gov.uk/Search/Search_Switch.aspx?ID=697992 ## 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-r6ebe6-0000697992. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-r6ebe6-0000697992.json.