Tulse Hill Joint Venture Development Project

Concepts

• tulse hill joint venture development project
• construction work
• mixed tenure housing development
• development management agreement
• affordable housing development agreement
• joint venture
• development management
• project management of the detailed construction design
• joint venture arrangement
• joint venture entity

Location

Land and buildings on the North West side of Avenue Park Road, Tulse Hill, London

Description

The Project is the carrying out of a mixed tenure housing development on the Site on the North West side of Avenue Park Road through a joint venture arrangement. Subject to detailed design / planning, it is anticipated that the development will comprise the construction of 110 new homes (tenure mix to be confirmed), 494 sqm commercial space floor space, and required infrastructure works.

Total Quantity or Scope

The joint venture contractual arrangements between the parties will be structured as follows: (i) Metropolitan Living Limited (MLL) (an entity within the same group as Metropolitan Housing Trust (MHT) and Mount Anvil Avenue Park Road Limited will form a joint venture entity (the "LLP") on a 50/50 basis pursuant to the terms of an LLP Agreement; (ii) MHT will transfer a long leasehold interest in the Site to the LLP; (iii) The LLP will award a Construction Contract to Mount Anvil Limited for the carrying out of the construction works on the Site. The construction works will consist of the construction of the affordable and private sale units, the commercial floorspace and required infrastructure works (iv) The LLP will enter into a Development Management Agreement (DMA) with Mount Anvil (Development Management) Limited. Under the DMA Mount Anvil (Development Management) Limited will be providing pre- construction services, technical advice and project management of the detailed construction design, preparation of the business plan and project programme and all required reporting requirements to the LLP. It will also be providing administrative, corporate and financial services to the LLP including all required taxation, audit, accounting and payment requirements. (v) The LLP will sell the private units that are constructed on the Site on the open market; and (vi) MHT will enter into an Affordable Housing Development Agreement with the LLP for the delivery of the affordable housing units that are constructed on the Site. The affordable units will be retained by MHT following completion. It is anticipated that the LLP will be formed in the second half of 2021. In this Notice this entity shall be referred to as The LLP.

Award Detail

CPV Codes

• 45000000 - Construction work

Legal Justification

The Contracting Authorities consider that the contractual arrangements referred to in section II.2.4 of this Notice fall outside the scope of the Public Contracts Regulations 2015 (PCR) for the following reasons: 1. The LLP Agreement is an agreement for the establishment, governance and operation of the LLP. It is not a works, services or supply contract for the purposes of the PCR, hence it falls outside of their scope. 2. The Site Transfer Agreement is an agreement for the disposal of an interest in land, and so is excluded from the scope of the PCR by virtue of Regulation 10(1)(a) of the PCR. It will not place the LLP under a positive and enforceable obligation to develop the Site to a specification prescribed by MHT. 3. The Construction Contract and DMA to be awarded by the LLP fall outside the scope of the PCR because the LLP will not meet the definition of a "body governed by public law" in Regulation 2(1) of the PCR nor, therefore, will it be classified as a "contracting authority" for the purposes of the PCR. This is due to the fact that the LLP will have a commercial character on account of it being a "for profit" entity with general commercial objects which exists for the predominant purpose of maximising profits from the development activities it undertakes. 4. The Affordable Housing Development Agreement is to be awarded by MHT to the LLP pursuant to Regulation 32(2)(b)(iii) of the PCR. Due to an exclusive right which the LLP will have at the point of award of the Agreement (being its ownership of the Site) MHT will only be able to appoint the LLP to deliver the affordable units for it. It will not be in position to procure the delivery of the affordable housing units from any other party.

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. ** It is intended that the contractual arrangements referred to in this notice following a minimum 10 day calendar day standstill period starting on the day after this notice is published in the UK Find a Tender Service. The Public Contracts Regulations 2015 (SI 2015 No 102) (as amended) (the Regulations) provide for aggrieved parties who have been harmed or who are at risk of harm by a breach of the Regulations to bring proceedings in the High Court. Any such proceedings must be brought within the limitation period specified by the Regulations according to the remedy sought.