Agreement for lease at Haymarket Development, Edinburgh

Concepts

• edinburgh
• haymarket development
• construction work
• city of edinburgh council
• edinburgh international conference centre limited
• new hotel development
• lease
• urban development
• new hotel
• prudential assurance company limited

Location

Description

The City of Edinburgh Council intends to enter into an agreement for lease for a new hotel at Buildings 2 & 3, Haymarket Development, Edinburgh.

Total Quantity or Scope

The Council intends to enter into an agreement for lease with The Prudential Assurance Company Limited (the Landlord) for a new hotel at Buildings 2 & 3, Haymarket Development. The new hotel development is to be built on land owned by the Landlord, and on completion leased to the Council for a period of 25 years, with the right to extend the lease for a further period of 5 years. The agreement for lease will include enforceable obligations on the Landlord relating to design and construction and the carrying out of infrastructure and external works in relation to the new hotel. The Council intends to grant a sublease to the Edinburgh International Conference Centre Limited (EICC), or a subsidiary of EICC, who intend to operate the new hotel.

Award Detail

CPV Codes

• 45000000 - Construction work
• 45210000 - Building construction work
• 45211360 - Urban development construction work

Legal Justification

This procurement is exempt on the basis of Regulation 33(1)(b) (Use of the negotiated procedure without prior publication) of the Public Contracts (Scotland) Regulation 2015. Given both the Landlord’s exclusive rights in the relevant land interests and for technical reasons associated with the requirements of the Council and EICC for the new hotel, the works can be provided only by the landlord and developer of the Haymarket development. The Council has carried out an extensive due diligence exercise and has satisfied itself that at the point of entering into the agreement for lease only one development site satisfies its stated requirements and objectives. In considering all potential hotel development opportunities the Council identified three key criteria namely (i) the site had to be located in the immediate vicinity of Edinburgh International Conference Centre; (ii) the development had to be able to accommodate a hotel with a capacity of around 400 bedrooms; and (iii) the development had to be one that would allow EICC to achieve its longer-term objective of becoming self-financing. Having explored a number of opportunities and possible options, including commissioning a report from professional advisers, the Council identified the Haymarket development as the only site that satisfied these three key criteria.

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. ** NOTE: To register your interest in this notice and obtain any additional information please visit the Public Contracts Scotland Web Site at https://www.publiccontractsscotland.gov.uk/Search/Search_Switch.aspx?ID=667196. (SC Ref:667196)