Official UK procurement notice
Investment Management Services · UK public procurement notice
Authority: South Yorkshire Pensions Authority (Public body)
What is being bought
Published requirement descriptionSouth Yorkshire Pensions Authority (SYPA) wishes to appoint an investment manager (authorised by the Financial Conduct Authority) to work in partnership with SYPA to deliver SYPA’s planned investments into domestic housing within SYPA’s Place Based Impact allocation. SYPA has allocated an initial sum of c.£75m to support the direct development of affordable, single-family housing in the geographical region of South Yorkshire through a build to rent model, to provide SYPA with sustainable long-term income and capital growth.
SYPA will appoint the investment manager to set up a closed-ended, private partnership vehicle where SYPA will invest as a Limited Partner. The investment manager will take the role of General Partner of the partnership and manage the investment opportunities, development and required ongoing service delivery on behalf of SYPA.
CPV: Banking and investment services · Pension fund management services · Pension investment services · Portfolio management services
The lotProcurement structure
single lot · value publishedLot #1SYPA is seeking to appoint an investment manager (authorised by the Financial Conduct…RenewalPublished value£16,000,000
SYPA is seeking to appoint an investment manager (authorised by the Financial Conduct Authority) to work in partnership with SYPA to deliver SYPA’s planned investments into domestic housing within SYPA’s Place Based Impact allocation. SYPA has allocated an initial c.£75m of un-levered equity to this strategy with the objective to support the direct development of affordable, single-family housing in the geographical region of South Yorkshire through a build to rent model.
SYPA aims to facilitate the building of high-quality and sustainable (as measured by an Energy Performance Certificate of A-C) private rental sector housing, with a proportion of units available to eligible tenants at a Discount to Market Rent. SYPA understands that affordability is a key concern for many, and SYPA intends to work with the investment manager to define the appropriate measures of affordability and the achievable Discount to Market Rent across the South Yorkshire region. Through this planned investment, SYPA will aim for a geographical spread of new housing across the four South Yorkshire districts of Barnsley, Doncaster, Rotherham and Sheffield.
The partnership’s objective will be to provide SYPA with sustainable long-term income and capital growth, secured against a portfolio of primarily new built private rental sector units in South Yorkshire. Once operationally stable, SYPA aims for the investment to deliver an income yield of 3-4% per annum and a target annual return of 6%. SYPA does not intend to become a registered social housing provider and/or landlord. The total SYPA allocation to this partnership is expected to grow as it is rebalanced in line with the overall pension fund as additional capital will be allocated to the partnership for investment to maintain its target weight within the overall strategic asset allocation. The value of the investment will be a minimum of £75m and could increase to up to £95m, as SYPA aims to maintain a 0.75% weighting of total assets to this mandate.
SYPA does not intend the partnership vehicle to take on planning risk but intends to facilitate the development of housing through investing in a combination of forward funding or forward purchases and / or standing investments. The investment manager will oversee the facilities management and rent collection from these properties where SYPA expects to receive quarterly rental income from the properties, whilst providing institutional funding to meet the affordable housing needs within the South Yorkshire area. The sale of assets will not be prohibited, should the manager deem this to be in the interest of the partnership, however this is not the primary objective.
Further details are set out in the procurement documents.
What it takes to wini
How this buyer will score bids.
The evaluation criteria and weights exactly as published on the notice, grouped by family (price, quality, social value and so on).
Evaluation split and conditions of participation as published; the tender pack may add morei
How this buyer will score bids.
The evaluation criteria and weights exactly as published on the notice, grouped by family (price, quality, social value and so on).
- Suitability
Candidates will be assessed in accordance with the Public Contract Regulations 2015, on the basis of information provided in response to the Selection Questionnaire.
- Technical & professional ability
The contract requires the investment manager to be authorised by the Financial Conduct Authority, and the manager maintain this authorisation throughout the contract.
Procedure terms & legal framework
From the official record · publisher note attached- Procedure method
- Competitive procedure with negotiation
- Legal basis
- CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)
- Procurement category
- Services
- Notice status
- Closed
- Procurement threshold
- Unspecified in notice
- Regulatory regime
- Standard
- Commercial structure
- Stand-alone contract (no framework)
- Competition type
- Competitive procedure
- GPA / WTO covered
- Unspecified in notice
- Recurring procurement
- No (one-off requirement)
- First published
- 20 Feb 2025, 09:16 GMT
- Last source update
- 20 Feb 2025, 09:16 GMT
- Authority reference
Inv20250220- FTS notice number
2025/S 000-006049- Classification (CPV)
- Delivery area
- Official registry OCID
ocds-h6vhtk-04e498Find a Tender
- Performance terms
Please refer to the procurement documents.
Publisher note: SYPA is conducting this procurement in accordance with the Public Contracts Regulations 2015 as amended using the competitive negotiation procedure as set out in Regulation 29. Interested organisations are required to complete and submit a response to the Selection Questionnaire (SQ) by the deadline in Section IV.2.2 in order to request to participate in this contract opportunity. Please see the SQ provided as part of the procurement documents for further details. Following assessment of SQ submissions, SYPA intends to shortlist 3 candidates to be invited to submit initial tenders, engage in negotiation with SYPA and submit a final tender. The draft invitation to submit initial tenders is being issued with the contract notice for information only and contains information on the anticipated procurement process and draft contract terms. Access to the procurement documents including instructions on how to complete and submit a response to the SQ is via the link in Section I.3. SYPA reserves the right to vary, amend and update any aspects of the procurement documents. The final details and versions of the procurement documents will be confirmed to applicants successful in being selected to participate in the relevant tender stages of the procurement procedure. Candidates are solely responsible for their costs and expenses incurred in connection with this procurement. Under no circumstances (including circumstances where SYPA cancels or varies the procurement) will SYPA or any of its advisers be liable for any costs or expenses borne or incurred by the candidates or their advisers. It is considered by SYPA that the estimated total contract value is within the range of £8,000,000 to £16,000,000, assuming that the contract is extended up to the maximum duration of 14 years, but this will depend on the volume of activities undertaken by the appointed investment manager. The figure inserted in Section II.1.5 is the maximum figure in this estimated range. This does not represent a promise or any guarantee to those amounts.
How it was run
Official notice- Submission deadline
- 28 Mar 2025, 17:00 GMT
- Submission channel
- {"electronicSubmission","written"}
- Accepted languages
- en
Timeline
20 Feb 2025 → 14 Apr 2025 · 3 dates- Notice published20 Feb 2025, 09:16 GMT
- Submission deadline28 Mar 2025, 17:00 GMT
- Invitations to tender expected14 Apr 2025, 00:00 BST
Contracting authority & participating public bodies
Dispute resolution & review bodies
- High Court Review body
Official documents & specifications (4)
Official links; attachments are not copiedTender pack and attachments
- Economic and financial selection criteria
- Technical selection criteria
- Economic and financial selection criteria
- Technical selection criteria