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.

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 from a third party unconnected with the Council. These works will be funded by the Landlord and neither GCL nor the Council will specify the works or oblige the Landlord to complete the works.

The Council will be permitted to grant tenancy agreements on the commercial and private residential elements of the Property up to a maximum of 5 years for each residential unit and to let the Affordable Housing units for more than 5 years.

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…Awarded

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, 16:43 BST
Last source update: 23 Jun 2021, 16:43 BST
Authority reference: DN552223
FTS notice number: 2021/S 000-014345
Classification (CPV): Non-residential property renting or leasing services
Delivery area: UK
Official registry OCID: ocds-h6vhtk-02bf7c Find a Tender

Why no open competition: The procurement falls outside the scope of application of the directive
Published justification: 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). The Council has already published a Voluntary
Ex Transparency Notice detailing the exempt land transaction, and this Contract Award Notice serves to confirm the position already set out in that notice. 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 are 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.

Commercial outcome & contract awards

Published awards, contracts and bid statistics, not a forecast

Awards 1

Awarded value £58,500,0001 contract exc. VAT

Bids received 1

Contracts signed 1latest 20 May 2021

Awarded to	Value	Date	Status
Legal and General Pensions Limited	£58,500,000 †	—	Awarded

Contracts

Contract 014345-2021-1 · Legal and General Pensions Limited
Signed
20 May 2021
Value
£58,500,000
Status
active

Bid statistics published by the authority

Bids	SME	VCSE	Valid bid range
1bids	—	—	—

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 WalesReview body London

Bidders & participating suppliers

1 commercial party on the notice

Legal and General Pensions LimitedAwarded supplier London, UK, EC2R 5AA

Official documents & specifications

Official links; attachments are not copied

No document links were published on the notice.