Unit 6, Viables Business Park, Jays Close, Basingstoke

The contracting authority owns the freehold of 6 Jays Close, Viables Business Park, Basingstoke. Tenant 1 occupies 6 Jays Close, Viables Business Park, Basingstoke under the existing headlease, with an unexpired term of approximately 91 years and this remains vested in Tenant 1.

Tenant 1 wishes to surrender the existing headlease and take a lease of a new building to be constructed on part of 6 Jays Close, Viables Business Park, Basingstoke. Tenant 1 has engaged a developer independently of the contracting authority.

The developer has approached the contracting authority to grant a lease to it on part of 6 Jays Close, Viables Business Park, Basingstoke, once Tenant 1 has surrendered their existing headlease. The developer will then become Tenant 2.

Subject to planning agreement and once the transaction is complete, Tenant 2 (the developer) will construct the new premises for Tenant 1 under terms agreed by them independently of the contracting authority. The contracting authority has not procured any works or placed any development obligations on the developer. The development obligations are contained in a separate agreement between Tenant 1 and their chosen developer.

The purpose of the project is for the contracting authority to obtain best rent, Tenant 1 to vacate one premises and occupy a new one and for the developer (Tenant 2) to develop the land on behalf Tenant 1 whilst retaining a long lease over the vacated site.

The agreements between Tenant 1, Tenant 2 and the contracting authority formalise the parties' agreement in respect of the phasing and structure of how the contracting authority will achieve best value, reflecting the commercial and economic reality of the deal, for the land subject to it.

Beyond normal planning obligations on the developer, the contracting authority is not setting out the design or specification for any of the works to be carried out.

The contracting authority's arrangement with Tenant 1 and Tenant 2 is exempt from the PCRs in accordance with Regulation 10(1)(a) as it concerns the rental of land owned by it. Furthermore, the arrangement is also not a public works contracts within the meaning of Regulation 2 of the PCR.

The total value of the transaction between Tenant 1 and Tenant 2 is unknown. In order to meet the requirements of this notice the contract value at section II.1.7 has been stated to be £0.01. At the time of publication of this notice the rent from the resulting leases to be received by the contracting authority following the land transaction excluding VAT is £666,735 per annum.