Find a TenderAwarded without competition
Published 23 Jun 2021, 16:13 BST

Official UK procurement notice

Hampden Road Lease · UK public procurement notice

Official notice

Authority: The Royal Borough of Kingston upon Thames (Local council)

ServicesAward procedure without prior publication of a call for competition
Sectors: Real estate services (70) Delivery: UK
Awarded value£58,500,000published contract · exc. VAT
Awarded 20 May 2021no call for competition
Awarded to Legal and General Pensions Limited

What is being bought

Published requirement description

The Royal Borough of Kingston upon Thames (the Council) is entering into an agreement for lease to take a lease of 20 to 40 years of 65 Hampden Road, Kingston Upon Thames, KT1 3HG (the Property) from Legal and General Pensions Limited (the Landlord), which the Council is proposing to sub-let to Guildhall Capital Limited (GCL) or another company under control of the Council.

CPV: Non-residential property renting or leasing services

The lotProcurement structure

single lot · no lot value published
Lot #1The Council is entering into an agreement for lease to take a lease of 20 to 40 years…

The Council is entering into an agreement for lease to take a lease of 20 to 40 years of the Property from the Landlord which the Council is proposing to sub-let to GCL or another company under control of the Council.

GCL is a wholly owned company of the Council, The Landlord intends to construct 79 residential units, as well as commercial and ancillary areas on the Property which is being acquired by the Landlord from a third party unconnected with the Council. These works will be funded by the Landlord. The Council is not conducting a procurement process under the Public Contracts Regulations ( “PCR 2015”) because the agreement for lease comprises an exempt land transaction and is not a public works contract or a public works concession contract pursuant to the Concession Contracts Regulations 2016 (“CCR 2016”). Neither the Council nor GCL are imposing legally enforceable obligations to carry out works nor have they specified requirements for the development. The original planning permission for the development was obtained prior to the involvement of GCL and the Council as potential tenants.

The Council/GCL will be permitted under the lease to grant tenancy agreements on the commercial and private residential elements of the Property up to a maximum of five (5) years for each residential unit and to underlet the Affordable Housing units for more than five (5) years. The Council will have the right to purchase the Property for a nominal sum at the end of the 40 year lease. The lease, which will be a full repairing and insuring lease, will be subject to annual index linked rent reviews with any changes subject to limits as to the maximum

increase.

Delivery: UK

Procedure terms & legal framework

From the official record
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
Services
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
23 Jun 2021, 16:13 BST
Last source update
23 Jun 2021, 16:13 BST
Authority reference
DN552223
FTS notice number
2021/S 000-014335
Classification (CPV)
Non-residential property renting or leasing services
Delivery area
UK
Official registry OCID
ocds-h6vhtk-02bf72 Find a Tender
Why no open competition
The procurement falls outside the scope of application of the directive
Published justification

Award of a contract without prior publication of a call for competition in the Official Journal of the European

Union in the cases listed below

  • The procurement falls outside the scope of application of the directive

Explanation:

This is a contract for the acquisition of a leasehold interest and rental of the Property which is exempt from the Public Contracts Regulations 2015 under Regulation 10(1)(a). For complete transparency, the Council is publishing this notice to detail the exempt land transaction and will be respecting a voluntary 10 day standstill period. The Property is being acquired by the Landlord from a third party unconnected with the Council, original planning permission for the development was obtained prior to the involvement of GCL and the Council as potential tenants and the development is being funded by the Landlord who will enter into a development agreement for the construction of the Property with a third party developer.

Any works and general maintenance and management services being undertaken by the Landlord are incidental to the lease arrangements and the Council is not specifying any works, hence the agreement for lease does not constitute a public works or services contract or concession contract.

The Council has not published a contract notice for the opportunity pursuant to the PCR 2015 or the Concession Contracts Regulations 2016, because the transaction detailed above does not comprise a ‘public works or services contract’ or a ‘concession’ which would require formal procurement pursuant to the UK’s public procurement regime. Instead, the agreement for lease comprises a land transaction which is excluded from the scope of the procurement regime, pursuant to regulation 10(1)(a) and/or regulation 4(2)(b) of the PCR 2015 and/or regulation 10(11)(a) and/or regulation 20(4)(a) of the CCR 2016.

The cumulative requirements for a public works contract is not met. Neither the Council nor GLC setting

the specification for works. The works involved– construction of residential and commercial property and ancillary accommodation are being specified by the Landlord and its developer. The Council and GLC are not exercising control or decisive influence over the construction or design of the development and their role is limited to inspection rights in respect of the development, updates on progress and some limited consultation on desirable outcomes. As noted above, there is no legally enforceable obligation on the Landlord to undertake the construction.

The Council’s predominant purpose in this transaction is obtaining a leasehold interest via an exempt land transaction and, therefore, insofar as any works are involved (which the Council does not accept), this would be an exempt transaction in accordance with regulation 4 of the PCR 2015 and/or regulation 20 of the CCR 2016.

The Council may therefore enter into the agreement for lease without prior publication of a Contract Notice. Whilst not legally required to publish this notice, the Council has taken the step in the interests of giving full transparency to the agreement for lease which as results from the private sector development of the site and will be voluntarily respecting a 10 day standstill period following the publication of this notice before entering into the above mentioned transaction.

Commercial outcome & contract awards

Published awards, contracts and bid statistics, not a forecast
Awards 1
Awarded value £58,500,0001 contract exc. VAT
Contracts signed 1latest 20 May 2021
Awarded toValueDateStatus
Legal and General Pensions Limited£58,500,000 †—Awarded

Contracts

Contracting authority & participating public bodies

The Royal Borough of Kingston upon Thames

Contracting authorityLocal CouncilRegional or local authorityGeneral public services Guildhall 2, Kingston upon Thames, UK, KT1 1EUContact name, email, phone

Dispute resolution & review bodies

  • High Court of England and WhalesReview body London

Bidders & participating suppliers

1 commercial party on the notice

Official documents & specifications

Official links; attachments are not copied

No document links were published on the notice.