Re-development of 8 Albert Embankment Reference number

Concepts

• albert embankment
• multi-dwelling buildings
• albert embankment reference number
• new lambeth fire station
• best consideration
• construction work
• latent value
• london fire brigade museum
• redevelopment scheme

Location

UKI45 Lambeth Main site or place of performance: 8 Albert Embankment, London, SE1 7SP

Description

Re-development of 8 Albert Embankment, London, SE1 7SP in order to obtain best consideration reasonably obtainable/release latent value and to provide New Lambeth Fire Station and London Fire Brigade Museum within the redevelopment scheme.

Total Quantity or Scope

Re-development of 8 Albert Embankment in order to obtain best consideration reasonably obtainable/ release latent value and to provide New Lambeth Fire Station and London Fire Brigade Museum within the redevelopment scheme.

Award Detail

CPV Codes

• 45211340 - Multi-dwelling buildings construction work

Indicators

• Award on basis of price and quality.

Legal Justification

The Proposed modifications to the Contract are: in order to meet the regulatory requirements of the relevant planning authority, an application for planning permission will be made to develop the Front Site and the land at Newport Street on a smaller scale which retains the features and objectives of the Agreed Scheme, fulfils the Authority’s Facilities Condition and the other conditions precedent; a separate planning application will be made for that part of the Rear Site known as the Workshop; the Purchase Price for the Development Site will be reduced to a minimum of the GMPP on the basis that both Front and Rear Sites proceed to development and, new provisions will be incorporated to revise the viability assessment and land values in the Development Site. Note for the purposes of sections II1.7 and V2.4 the total value of the contract is up to circa £67m if conditions precedent are fulfilled and planning permission for an agreed scheme was obtained but subject to a downward variation in accordance with a price adjustment mechanism not exceeding (subject to conditions) a Guaranteed Minimum Purchase Price of £24m.

Other Information

Re-development of 8 Albert Embankment in order to obtain best consideration reasonably obtainable/ release latent value and to provide New Lambeth Fire Station and London Fire Brigade Museum within the redevelopment scheme. The procurement falls outside the scope of application of the directive Explanation: This Notice is being published for the sake of transparency and voluntarily since the proposal to which it refers (see below and D1. 3) is an intention to modify an existing contract in a way permitted under the relevant procurement rules and which therefore does not require a new procurement procedure or the prior publication of a contract notice. The Contract Notice sought the appointment of a development partner in order to achieve the best consideration reasonably obtainable from a disposal of the Authority’s interest in land at 8 Albert Embankment whilst re-providing Lambeth Fire Station and providing a new London Fire Brigade Museum. In conformity with that Notice, published on 15/09/2016, the Authority entered into a Development and Lease Agreement on 24/08/2016 (“the Contract”) for a phased mixed use development of its land at 8 Albert Embankment, London SE1 7SP, the Workshop at Lambeth High Street and land on the west side of Newport Street (“The Development Site”) which included up to 264 residential units, a new fire station, museum (“the Authority’s Facilities Condition”) and a hotel of up to 200 bedrooms (“the Agreed Scheme”). The Contract Award Notice dated 15/09/2016 confirmed that the successful tenderer was to pay the Authority a sum to be assessed through a price adjustment mechanism in the Contract following the grant of planning permission. The Contract provided that the “Purchase Price” for the Development Site to deliver the Agreed Scheme was £67,000,000.00, divided between “Front” and “Rear” Sites. The Contract also provided that: the Purchase Price was subject to adjustments in accordance with Schedules 13 and 15 of the Contract. Schedule 15 contained a Land Adjustment Calculation based on the Agreed Scheme’s mixed development uses for the Front and Rear Sites referable to defined net internal sq ft areas and specified numbers of hotel bedrooms, reductions to either changed the Purchase Price downwards but subject to the Purchase Price not falling below a “Guaranteed Minimum Purchase Price” (“GMPP”) totaling £24,000,000 on the basis that the both Front and Rear Sites would proceed. The Contract was conditional on the fulfilment of conditions including the obtaining of a “Satisfactory Planning Permission” and fulfilling the Authority’s Facilities Condition. The Contract anticipated (but did not require) a single application for Planning Permission for the Agreed Scheme. The proposal is to modify the Contract as it has proven impossible to secure a Satisfactory Planning Permission for the Agreed Scheme and obtain the best consideration reasonably obtainable as sought in the Contract Notice by pursuing the Agreed Scheme. That outcome has necessitated modifying the Contract in an insubstantial way and as set out in detail in section D 1.3.