Basildon University Hospital main entrance and retail facility

CPV: Construction work · Construction work for buildings relating to health · Entrance hall construction work · Hospital facilities construction work · Retail trade services

Procedure method

Award procedure without prior publication of a call for competition

Legal basis

CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)

Procurement category

Works

Notice status

Awarded without competition

Procurement threshold

Unspecified in notice

Regulatory regime

Standard

Commercial structure

Stand-alone contract (no framework)

Competition type

Direct award (no call for competition)

GPA / WTO covered

Unspecified in notice

Recurring procurement

Unspecified in notice

First published

22 Mar 2021, 10:22 GMT

Last source update

22 Mar 2021, 10:22 GMT

Authority reference

CA7723

FTS notice number

2021/S 000-005723

Classification (CPV)

Construction workConstruction work for buildings relating to healthEntrance hall construction workHospital facilities construction workRetail trade services

Delivery area

East of England (UKH37)

Official registry OCID

ocds-h6vhtk-029dcc Find a Tender

Why no open competition

The procurement falls outside the scope of application of the directive

Published justification

The subject of this notice is an agreement to be entered into between MSEFT and Noviniti for the grant of an option entitling Noviniti to call for the grant of a 35 years Ground Lease of part of MSEFT's freehold land at the Hospital.

The area which will be subject to the option is defined within the option agreement and the option period will run for an initial period of 39 weeks (subject to extension).

MSEFT has had valuation advice and will grant the Ground Lease at a premium which reflects market value.

If Noviniti exercises the option and calls for the grant of the Ground Lease that Ground Lease will be for a period

of up to 35 years. The Ground Lease is subject to break clauses in favour of MSEFT after 2 years and again at an agreed date reflecting the 30th anniversary of practical completion of the Potential Development (as defined below) by Noviniti.

The Ground Lease anticipates that Noviniti may choose (but with no obligation to do so) to undertake a Permitted Alteration (in accordance with a Licence for Alterations that may be entered into) of a building extension at the Hospital for retail and ancillary uses (the "Potential Development").

The detail of the Potential Development will have been agreed between MSEFT and Noviniti prior to the grant of the option agreement. MSEFT has a right to terminate the Ground Lease if Noviniti has not commenced the works comprising the Potential Development by the date 2 years after the date of the Ground Lease.

MSEFT will have obligations to use reasonable endeavours to assist Noviniti in dealing with matters relating to the planning permission for the Potential Development including entering into third party agreements necessary to facilitate the Potential Development.

The exercise of the option by Noviniti to call for the Ground Lease does not trigger any obligation on Noviniti to undertake or on MSEFT to procure the Potential Development. If Noviniti decides to undertake the Potential Development, (and if MSEFT subsequently so decides) Noviniti and MSEFT may enter into an agreement for lease. The agreement for underlease would allow Noviniti to grant an underlease of the completed development to a third party operator for part of the term of the Ground Lease and a reversionary underlease to MSEFT for the remainder of the term of the Ground Lease. If that agreement is reached MSEFT anticipates that MSEFT, Noviniti and any third party operator will enter into further documents including the agreement for lease, a licence for alterations and underleases of the completed development.

• Noviniti Dev Co 8 LtdAwarded supplier The Stables, Churchfield Farm, Harley Way, Peterborough, UK, PE8 5AUContact emailShow contact details

No document links were published on the notice.