Queen Alexandra Hospital, ground leases of land at the Main Entrance and North Entrance

Concepts

• queen alexandra hospital
• portsmouth
• construction work
• portsmouth hospitals university nhs trust
• ground leases of land
• main entrance
• north entrance
• portsmouth hospitals university
• land
• hospital

Location

Queen Alexandra Hospital, Southwick Hill Road, Portsmouth

Description

Portsmouth Hospitals University NHS Trust ("PHUT") intends to enter an option agreement and two ground leases with Noviniti Dev Co 7 Limited ("Noviniti") in respect of a new retail use and lecture theatre and clinical space development ("the Development") at land at the Main Entrance and North Entrance at the Queen Alexandra Hospital, Portsmouth ("the Hospital"). It is anticipated that Noviniti will make arrangements to identify its initial commercial tenant of the retail space. The contractual arrangements are structured as a land transaction exempt from the Public Contracts Regulations 2015 ("PCR") and the Concession Contracts Regulations 2016 ("CCR").

Total Quantity or Scope

PHUT intends to enter into an option agreement and two ground leases with Noviniti Dev Co 7 Ltd ("Noviniti") in respect of a new retail use and lecture theatre and clinical space development at Queen Alexandra Hospital, Portsmouth (the "Hospital"). PHUT has structured the contractual arrangements as a land transaction exempt from the Public Contracts Regulations 2015 and the Concession Contracts Regulations 2016.

Award Detail

CPV Codes

• 45000000 - Construction work
• 45213100 - Construction work for commercial buildings

Legal Justification

The subject of this notice is an agreement to be entered into between PHUT and Noviniti for the grant of an option entitling Noviniti to call for the grant of two 46 year Ground Leases of parts of PHUT's freehold land at the Hospital. The areas which will be subject to the option are defined within the Option Agreement and the option period will run for an initial period of 39 weeks (subject to extension). PHUT has had valuation advice and will grant the Ground Leases at premiums which reflects the market value. The Ground Leases anticipate that Noviniti may choose (but with no obligation to do so) to undertake a Permitted Alteration (in accordance with a Licence for Alterations that may be entered into in relation to each Ground Lease) of a retail use and lecture theatre and clinical space development at the Hospital (the "Potential Development"). Each Ground Lease is subject to break clauses in favour of PHUT if no Licence for Alterations has been issued or work on any Permitted Alterations begun at the second anniversary of the relevant Ground Lease. The Ground Leases are subject to further break clauses in favour of PHUT on the 6th anniversary if Certificates of Practical Completion have not been issued in relation to the Potential Development, and then on the 40th anniversary of practical completion of the Potential Development. The details of the Potential Development will have been agreed between PHUT and Noviniti prior to the grant of the option agreement. Noviniti has a right to terminate the Ground Leases if Noviniti has not commenced the works comprising the Potential Development by the date 52 weeks after the date of the Ground Leases. The exercise of the option by Noviniti to call for the Ground Leases does not trigger any obligation on Noviniti to undertake or on PHUT to procure the Potential Development. If Noviniti decides to undertake the Potential Development (and if PHUT subsequently so decides) Noviniti and PHUT may enter into an agreement for lease providing for the grant by Noviniti of underleases of all or part of the completed development to PHUT and/or a third party, with reversionary leases to PHUT. If that agreement is reached PHUT anticipates that PHUT, Noviniti and the third party (if applicable) will enter into further documents including an agreement for lease, two licences for alterations and underleases of the completed development.

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. ** The subject of this notice is an agreement to be entered into between PHUT and Noviniti for the grant of an option entitling Noviniti to call for the grant of two 46 year Ground Leases of parts of PHUT's freehold land at the Hospital. The areas which will be subject to the option are defined within the Option Agreement and the option period will run for an initial period of 39 weeks (subject to extension). PHUT has had valuation advice and will grant the Ground Leases at premiums which reflects the market value. The Ground Leases anticipate that Noviniti may choose (but with no obligation to do so) to undertake a Permitted Alteration (in accordance with a Licence for Alterations that may be entered into in relation to each Ground Lease) of a retail use and lecture theatre and clinical space development at the Hospital (the "Potential Development"). Each Ground Lease is subject to break clauses in favour of PHUT if no Licence for Alterations has been issued or work on any Permitted Alterations begun at the second anniversary of the relevant Ground Lease. The Ground Leases are subject to further break clauses in favour of PHUT on the 6th anniversary if Certificates of Practical Completion have not been issued in relation to the Potential Development, and then on the 40th anniversary of practical completion of the Potential Development. The details of the Potential Development will have been agreed between PHUT and Noviniti prior to the grant of the option agreement. Noviniti has a right to terminate the Ground Leases if Noviniti has not commenced the works comprising the Potential Development by the date 52 weeks after the date of the Ground Leases. The exercise of the option by Noviniti to call for the Ground Leases does not trigger any obligation on Noviniti to undertake or on PHUT to procure the Potential Development. If Noviniti decides to undertake the Potential Development (and if PHUT subsequently so decides) Noviniti and PHUT may enter into an agreement for lease providing for the grant by Noviniti of underleases of all or part of the completed development to PHUT and/or a third party, with reversionary leases to PHUT. If that agreement is reached PHUT anticipates that PHUT, Noviniti and the third party (if applicable) will enter into further documents including an agreement for lease, two licences for alterations and underleases of the completed development.