Development at Friar's Close, Bear Lane and 1 and 3 Burrell Street, London

Concepts

• friar's close
• liverpool
• construction work
• mixed tenure housing development
• development management agreement
• bear lane
• affordable housing development agreement
• burrell street
• friars
• development management

Location

1 to 26 Friar's Close, Bear Lane and 1 and 3 Burrell Street, Southwark, London

Description

The Project is the carrying out of a mixed tenure housing development on the Site at 1 to 26 Friar's Close, Bear Lane and 1 and 3 Burrell Street, through a joint venture arrangement. Subject to detailed design / planning, it is anticipated that the development will comprise the construction of between 80 and 120 new homes. The affordable/ private unit split has yet to be fully determined, though as a minimum the development will involve the re-provision of 28 existing affordable units on the Site.

Total Quantity or Scope

The Project is the carrying out of a mixed tenure housing development on the Site at 1 to 26 Friar's Close, Bear Lane and 1 and 3 Burrell Street, through a joint venture arrangement. Subject to detailed design / planning, it is anticipated that the development will comprise the construction of between 80 and 120 new homes. The affordable/ private unit split has yet to be fully determined, though as a minimum the development will involve the re-provision of 28 existing affordable units on the Site. The joint venture contractual arrangements between the parties will be structured as follows: (i) Riverside Regeneration (Southwark) Limited (RRS) (an entity within the same group as The Riverside Group Limited (RGL)) and Mount Anvil (Friars Close) Limited will form a joint venture entity (the "LLP") on a 50/50 basis pursuant to the terms of an LLP Agreement; (ii) RGL will transfer a long leasehold interest in the Site to the LLP pursuant to the terms of an Agreement for Lease; (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, and associated infrastructure works. The estimated value of the Construction Contract is between £20 million and £40 million; (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 provide various development management, planning, sales and marketing services in relation to the development. The estimated value of the DMA is between £1 million and £2 million; (v) The LLP will sell the private units that are constructed on the Site on the open market; and (vi) RGL 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 RGL following completion. The estimated value of the Affordable Housing Development Agreement is between £10 million and £20 million.

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 Agreement for Lease 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 RGL. 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 RGL 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 leasehold interest in the Site) RGL 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.