Royal Derby Hospital MSCP

Concepts

• derby
• construction work
• derby hospital
• royal derby hospital
• royal derby hospital mscp
• royal
• hospital
• mscp
• hospitals
• car park building

Location

Derby

Description

University Hospitals of Derby and Burton NHS Foundation Trust ("UHDB") has entered into contracts with (1) Noviniti Dev Co 10 Limited ("Noviniti") (2) CP Plus Limited ("CP Plus") in respect of a new multi-storey car park development at Royal Derby Hospital, Derby Hospital ("the Hospital"). The documents executed by UHDB comprise a Principal Agreement for Underlease ("S2AFL") and a Licence for Alterations ("LTA") to be granted to Noviniti to permit Noviniti to undertake the car park works. The completed car park will be leased to CP Plus as the car park operator pursuant to an 'operator lease' granted pursuant to the S2AFL. There is a Deed of Covenant between CP Plus and UHDB in respect of payment of surplus car parking revenue to UHDB and certain circumstances where UHDB will support the rent payable by CP Plus. The contractual arrangements are structured as a land transaction exempt from the Public Contracts Regulations 2015 and the Concession Contracts Regulations 2016

Total Quantity or Scope

UHDB has entered into the S2AFL with Noviniti and CP Plus in respect of a new multi-storey car park development at the Hospital and a Licence for Alterations under the Ground Lease granted to Noviniti in order to permit Noviniti to carry out the development. Following completion of the works, Noviniti will grant an Operator Lease to CP Plus. UHDB will be obliged to accept a lease of the car park directly if CP Plus defaults. UHDB has structured the contractual arrangements as a land transaction exempt from the Public Contracts Regulations 2015 ("PCR") and the Concession Contracts Regulations 2016 ("CCR").

Award Detail

Award Criteria

CPV Codes

• 45000000 - Construction work
• 45213312 - Car park building construction work

Indicators

• Award on basis of price.

Legal Justification

University Hospitals of Derby and Burton NHS Foundation Trust ("UHDB") has entered into contracts with (1) Noviniti Dev Co 10 Limited ("Noviniti") (2) CP Plus Limited ("CP Plus") in respect of a new multi-storey car park development at Royal Derby Hospital, Derby Hospital ("the Hospital"). The documents executed by UHDB comprise a Principal Agreement for Underlease ("S2AFL") and a Licence for Alterations ("LTA") to be granted to Noviniti to permit Noviniti to undertake the car park works. The completed car park will be leased to CP Plus as the car park operator pursuant to an 'operator lease' granted pursuant to the S2AFL. There is a Deed of Covenant between CP Plus and UHDB in respect of payment of surplus car parking revenue to UHDB and certain circumstances where UHDB will support the rent payable by CP Plus. The contractual arrangements are structured as a land transaction exempt from the Public Contracts Regulations 2015 and the Concession Contracts Regulations 2016.

Other Information

Following on from the Option Agreement between UHDB, Noviniti and CP Plus dated 15.11.23 ("S1OA") pursuant to which a ground lease was granted by UHDB to Noviniti on 15.11. 2023 (which ground lease was surrendered and a new ground lease dated 27.3.2024 was entered into) of the site of the car park works for a term of years expiring Nov 2068 (the Noviniti Lease), UHDB proposes to enter into the S2AFL and the Licence for Alternations. The S1OA to grant the Ground Lease was the subject of a VEAT Notice published on 21 September 2023 with reference 2023/S 000-027840 and the S2AFL was the subject of a further VEAT Notice published on 31 January 2024 with reference 2024/S 000-003149. Under the S2AFL Noviniti is not obliged to undertake the car park works but if it does not, UHDB may terminate the Noviniti Lease. The Noviniti Lease contains a break right in favour of UHDB if Noviniti does not commence the car park works by an agreed deadline. UHDB agreed, as part of the arrangements, to underwrite certain costs in the event that UDHB did not sign up to its commitments under S2AFL. The obligations to underwrite costs fall away on completion of S2AFL. If Noviniti completes the construction of the car park works, Noviniti may call for CP Plus to accept the Operator Lease which comprises the whole of the car park for a term of 15 years. UHDB will accept a reversionary lease of the car park fora 25 year term commencing on expiry of the Operator Lease. UHDB will also enter into a Deed of Guarantee and Indemnity (DGI) in favour of Noviniti or its funder or purchaser in respect of the tenant's obligations under the Operator Lease. There is provision for UHDB to accept a direct lease from Noviniti of the car park in place of the Operator Lease if CP Plus defaults and also for UHDB to accept an Overriding Lease (as an alternative to the obligations under the DGI) to become the direct tenant of Noviniti or its funder or purchaser if CP Plus defaults during the term of the Operator Lease. At completion, UHDB and CP Plus intend to enter into a Deed of Covenant under which surplus car parking revenue is paid to UHDB and UHDB commits to support the rent payable by CP Plus in certain instances. Noviniti is under no obligation to serve notice to elect to carry out the car park works. No public works contract arises due to the lack of an enforceable obligation. Following completion of the Noviniti Lease Noviniti has the exclusive right to undertake the car park works until such time as the UHDB break right under the Noviniti Lease becomes capable of exercise. UHDB considers that the arrangements fall within the land exemption under Regulation 10(1)(a) PCR and/or regulation 10(11)(a) CCR.