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Contract Award Notice

Housing Annuity Leaseback

  • First published: 12 February 2018
  • Last modified: 12 February 2018
  • Version: N/A
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To record your interest or obtain additional information or documents please find instructions within the Full Notice Text. (NOTE: Contract Award Notices and Prior Information Notices do not normally require a response)

Contents

Summary

OCID:
Published by:
Newcastle City Council
Authority ID:
AA20208
Publication date:
12 February 2018
Deadline date:
-
Notice type:
Contract Award Notice
Has documents:
No
Has SPD:
No
Has Carbon Reduction Plan:
N/A

Abstract

The Council wishes to invite organisations to finance, design and build and fit out new homes on specific sites and to certain standards and specification which the Council will lease back for a set period of time under an Annuity Lease Back Model ‘ALBM’,. At the end of this period of time all property and assets will revert back to Council ownership. By leasing the properties back to the Council the partner will secure a long term fixed return for the investment.

There are 148 new homes (including Assisted Living apartments, Tyneside flats and bungalows) on 5 sites across the city envisaged for inclusion. This will deliver older persons housing, and an assisted living scheme.

The Scheme involves delivering the following developments:

— 53 number assisted Living Units (consisting of a mix of apartments, Tyneside flats and bungalows) at the Parkway Site:

— 20 number Dementia Care Apartment units at Clumber street Site

— 22 number Units (consisting of a mix of bungalows and Tyneside flats) at the former Westerhope Day Centre Site:

— 19 number units (consisting of a mix of bungalows and Tyneside flats) at the Avision street and Douglas terrace Site:

— 34 units (consisting of a mix of bungalows and Tyneside flats) at Coniston court Site.

The lease period is for 65 years, however there is a break clause in the overriding lease at 40 years. Therefore the investment return period should be profiled over a 40 year period (the investor should base their income from the lease over 40 years). The scheme may involve some capital contribution being made available by the council but the appointed provider is expected to be able to fully finance the delivery of the scheme. Further details of the requirements and the scope of the scheme is provided in the Memorandum of Information (MOI) and supporting information which will be available as part of the procurement documents at https://procontract.due-north.com/.

Full notice text

Contract award notice

Results of the procurement procedure

Section I: Contracting authority

I.1) Name and addresses

Newcastle City Council

Commissioning and Procurement, City of Newcastle upon Tyne, Room 104, Civic Centre, Barras Bridge

Newcastle upon Tyne

NE1 8QH

UK

Contact person: Chris Rush / Heather Rothwell

Telephone: +44 1912116930

E-mail: corporate.procurement.team@newcastle.gov.uk

Fax: +44 1912114832

NUTS: UKC22

Internet address(es)

Main address: http://www.newcastle.gov.uk

I.4) Type of the contracting authority

Regional or local authority

I.5) Main activity

General public services

Section II: Object

II.1) Scope of the procurement

II.1.1) Title

Housing Annuity Leaseback

Reference number: 005601

II.1.2) Main CPV code

45211000

 

II.1.3) Type of contract

Works

II.1.4) Short description

The Council wishes to invite organisations to finance, design and build and fit out new homes on specific sites and to certain standards and specification which the Council will lease back for a set period of time under an Annuity Lease Back Model ‘ALBM’,. At the end of this period of time all property and assets will revert back to Council ownership. By leasing the properties back to the Council the partner will secure a long term fixed return for the investment.

There are 148 new homes (including Assisted Living apartments, Tyneside flats and bungalows) on 5 sites across the city envisaged for inclusion. This will deliver older persons housing, and an assisted living scheme.

II.1.6) Information about lots

This contract is divided into lots: No

II.1.7) Total value of the procurement

Value excluding VAT: 18 503 515.00  EUR

II.2) Description

II.2.2) Additional CPV code(s)

45000000

45210000

45211341

45211200

66000000

45430000

45451000

45421151

45331100

45331110

45211310

II.2.3) Place of performance

NUTS code:

UKC22


Main site or place of performance:

Newcastle upon Tyne.

II.2.4) Description of the procurement

The Council wishes to invite organisations to finance, design and build and fit out new homes on specific sites and to certain standards and specification which the Council will lease back for a set period of time under an Annuity Lease Back Model ‘ALBM’,. At the end of this period of time all property and assets will revert back to Council ownership. By leasing the properties back to the Council the partner will secure a long term fixed return for the investment.

There are 148 new homes (including Assisted Living apartments, Tyneside flats and bungalows) on 5 sites across the city envisaged for inclusion. This will deliver older persons housing, and an assisted living scheme.

The Scheme involves delivering the following developments:

— 53 number assisted Living Units (consisting of a mix of apartments, Tyneside flats and bungalows) at the Parkway Site:

— 20 number Dementia Care Apartment units at Clumber street Site

— 22 number Units (consisting of a mix of bungalows and Tyneside flats) at the former Westerhope Day Centre Site:

— 19 number units (consisting of a mix of bungalows and Tyneside flats) at the Avision street and Douglas terrace Site:

— 34 units (consisting of a mix of bungalows and Tyneside flats) at Coniston court Site.

The lease period is for 65 years, however there is a break clause in the overriding lease at 40 years. Therefore the investment return period should be profiled over a 40 year period (the investor should base their income from the lease over 40 years). The scheme may involve some capital contribution being made available by the council but the appointed provider is expected to be able to fully finance the delivery of the scheme. Further details of the requirements and the scope of the scheme is provided in the Memorandum of Information (MOI) and supporting information which will be available as part of the procurement documents at https://procontract.due-north.com/.

II.2.5) Award criteria

Quality criterion: Design / Construction Approach / Supply Chain Management / Social Value (linked to the contract) / Communications & Stakeholder Engagement & Legal. / Weighting: 40

Price / Weighting:  60

II.2.11) Information about options

Options: No

II.2.13) Information about European Union funds

The procurement is related to a project and/or programme financed by European Union funds: No

II.2.14) Additional information

11.1.5 Estimated total value and 11.2.6 estimated value: the estimated value of then scheme is between £12m - £18m.

Section IV: Procedure

IV.1) Description

IV.1.1) Type of procedure

Competitive dialogue

IV.1.8) Information about Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes

IV.2) Administrative information

IV.2.1) Previous publication concerning this procedure

Notice number in the OJ S:

2017/S 037-066344

Section V: Award of contract

Contract No: 004898

Title: Housing Annuity Leaseback

A contract/lot is awarded: Yes

V.2 Award of contract

V.2.1) Date of conclusion of the contract

02/01/2018

V.2.2) Information about tenders

Number of tenders received: 3

Number of tenders received from SMEs: 0

Number of tenders received from tenderers from EU Member States: 0

Number of tenders received from tenderers from non-EU Member States: 0

Number of tenders received by electronic means: 3

The contract has been awarded to a group of economic operators: No

V.2.3) Name and address of the contractor

Tolent living LTD

Gateshead

NE11 0NL

UK

NUTS: UKC22

The contractor is an SME: No

V.2.4) Information on value of the contract/lot (excluding VAT)

Initial estimated total value of the contract/lot:

Total value of the contract/lot: : 18 503 515.00  GBP

V.2.5) Information about subcontracting

Section VI: Complementary information

VI.3) Additional information

(lV.2.2) time limit for requests to participate must be by way of completion and return of the selection questionnaire ("SQ") (in accordance the requirements set out in the SQ) by the date and time specified in section lV.2.2.

The Council reserves the right not to award or to award only part (or a different arrangement) of the opportunity described in this contract notice.

The procurement documents (including the Invitation to Participate in Dialogue) are draft documents for general information and providing indicative information of the Councils intended approach in the procurement. The Council reserves the right to vary and amend and update any aspect s of these documents. Final versions of the procurement documents will be confirmed to the applicants successful in being selected to participate in the competitive dialogue stage.

VI.4) Procedures for review

VI.4.1) Review body

Newcastle City Council

N/A

UK

VI.4.2) Body responsible for mediation procedures

Commissioning and Procurement Newcastle City Council

Room 104 Civic centre

Newcastle

NE1 8QH

UK

VI.5) Date of dispatch of this notice

08/02/2018

Coding

Commodity categories

ID Title Parent category
45211310 Bathrooms construction work Construction work for multi-dwelling buildings and individual houses
45331110 Boiler installation work Heating, ventilation and air-conditioning installation work
45210000 Building construction work Works for complete or part construction and civil engineering work
45331100 Central-heating installation work Heating, ventilation and air-conditioning installation work
45000000 Construction work Construction and Real Estate
45211000 Construction work for multi-dwelling buildings and individual houses Building construction work
45451000 Decoration work Other building completion work
66000000 Financial and insurance services Finance and Related Services
45211341 Flats construction work Construction work for multi-dwelling buildings and individual houses
45430000 Floor and wall covering work Building completion work
45421151 Installation of fitted kitchens Joinery work
45211200 Sheltered housing construction work Construction work for multi-dwelling buildings and individual houses

Delivery locations

ID Description
100 UK - All

Alert region restrictions

The buyer has restricted the alert for this notice to suppliers based in the following regions.

ID Description
There are no alert restrictions for this notice.

About the buyer

Main contact:
corporate.procurement.team@newcastle.gov.uk
Admin contact:
N/a
Technical contact:
N/a
Other contact:
N/a

Further information

Date Details
No further information has been uploaded.

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