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Official procurement procedure
3 Thames Road Newham - residential Agreement for Lease
Flats construction work
Houses construction work
Multi-dwelling buildings construction work
+3 more
Published value
Not published
Submission deadline Not published
Lots published1
Procurement Executive Summary
AI & Search Synopsis
Generated from official OCDS record
Tenderline Synopsis: LONDON BOROUGH OF NEWHAM: "3 Thames Road Newham - residential Agreement for Lease". Published status: complete. Published value: Value not published. 1 published lot. Submission deadline not published. See the official notice for participation instructions.
| Contracting Authority | LONDON BOROUGH OF NEWHAM | Scope & Categories | Not published | Submission Window | complete No deadline published |
|---|---|---|---|---|---|
| Submission Gateway | Direct notice route | Legal Basis & Regime | Standard procurement | Estimated Value (exc. VAT) | Not published |
Bidder Intelligence · Authority Profile: LONDON BOROUGH OF NEWHAM
Market Analytics
Derived from OCDS awards & bid statistics
Published history for LONDON BOROUGH OF NEWHAM. These figures describe retained records, not a forecast of bids or a measure of buyer bias.
Published-to-award variance
Not availableInsufficient comparable data
Competition Density
6Bids / Report
Supplier ConcentrationNo estimate
Insufficient attributable awardsNo concentration estimate availablePayment Terms
Check noticePublished terms
Coverage: 3 active published awards; 1 bid reports (which may be per lot). Supplier values exclude multi-supplier awards, frameworks and DPS, and use GBP only. They are published award values, not payments. Published-to-award variance compares single-lot, single-award, single-supplier GBP procedures with explicitly non-framework/non-DPS status; increases remain in the average. Unpublished data stays unknown. Awarded suppliers are winners, not all bidders.
Procedure terms
Contracting AuthorityLONDON BOROUGH OF NEWHAM | Procedure methodNot published | Procurement categoryNot published |
Statuscomplete | Framework / DPSNot published | CompetitionNot published |
Above thresholdNot published | Legal basisNot published | Tender period startsNot published |
Clarification deadlineNot published | Electronic submissionNot published | Submission languagesNot published |
Published23 Dec 2021, 16:09 GMT | Last source update23 Dec 2021, 16:09 GMT | Recurring procurementNot published |
ClassificationFlats construction work, Houses construction work, Multi-dwelling buildings construction work, Multi-functional buildings construction work, Residential homes construction work, Urban development construction work | ||
Delivery area | ||
OCIDocds-h6vhtk-030575 | ||
What is being bought
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.
What changed
From the official release history
- Status changed to complete
23 Dec 2021, 16:09 GMT - Official notice release published
23 Dec 2021, 16:09 GMT - Buyer information updated
23 Dec 2021, 16:09 GMT
Lots and requirements (1)
Published by the contracting authority
- Lot 1 · #1Individual lot title not publishedStatus not publishedPublished valueNot publishedThe 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.Contract periodNot publishedEligibilityNot publishedOptions / renewalNot published
Timeline
- Procedure published
23 Dec 2021, 16:09 GMT - Award active
Not published · Not published - Contract active
Signed 2 Nov 2021, 00:00 GMT · £104,950,000
Commercial outcome and competition
Awards Pension Insurance Corporation Plc, R Blue Regen TR Limited, Reef Estates Limited Not published · Not published · active |
Contracts Contract £104,950,000 · signed 2 Nov 2021, 00:00 GMT · active |
Bid statisticsNo aggregate bid statistics published |
Buyer and organisations in this procedure
LONDON BOROUGH OF NEWHAM
Contracting authority GB-FTS-39121Documents (0)
Official links; attachments are not copied
No linked documents are published
Related procedures (0)
No related procedures published
Planning and rationale
Planning budgetNot published |
No-engagement rationaleNot published |
Procedure rationaleThe 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 £8,200,000 premium (Premium) to the Landowner, on Lease grant, then £1,935,000 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. |