II.2.2) Additional CPV code(s)
70110000
70111000
70112000
70310000
70311000
70330000
70332200
45000000
45100000
45200000
45210000
45300000
71000000
71200000
71540000
71541000
77314000
79993000
79993100
50000000
66100000
72221000
79400000
79412000
II.2.3) Place of performance
NUTS code:
UKL18
UKL14
Main site or place of performance:
Swansea and South West Wales
II.2.4) Description of the procurement
The University is seeking delivery expertise, and increased capacity and pace for its proposed development to ensure optimal performance and returns. The University will also be seeking to achieve its wider objectives concerning income generation, economic growth, job creation and regeneration.
The University wishes to find a Joint Venture Partner or Partners with whom to establish a Joint Venture to assist in unlocking the potential for developing the SA1 Estate for the benefit of SA1, Swansea and West Wales, with large development returns being possible. The University’s team has undertaken work over the last 2 years and has now reached a stage where it considers that additional expertise and resource is required to realise its aspirations and achieve best value.
The University’s core aspirations and expectations for the project and any Joint Venture are:
to establish with its Joint Venture Partner a separate legal entity (special purpose vehicle) to develop the SA1 Estate with the Joint Venture Partner injecting seed funding, assisting in creating cost efficiencies in any building work and ultimately sharing profits with the University on completed projects;
to generate short to medium term returns to enable the University to discharge its payment obligations to Welsh Government and finance the Box Village (whether or not the Box Village is undertaken through separate partners);
to generate additional returns for the University through development and select an effective Joint Venture Partner to bring added social value in the medium to long term, which help towards the creation of the Innovation Precinct (whether or not delivered by the Joint Venture Partner or separately); and
to generally enhance the University’s core offering including business co-location, education and training, product development and further commercial opportunities, subject to feasibility.
Suggested Corporate Model
The University believes that the most appropriate corporate structure is the creation of a special purpose vehicle in which both the University and Joint Venture Partner(s) take equity stakes. This SPV will have the following features:
land will be transferred or licensed to the SPV for the University as its contribution to the SPV – this land has significant value and opportunity and is described in more detail in the Briefing Paper and accompanying documents and the University also has additional land and assets that it may wish to incorporate into the project at a later stage at its discretion;
the Joint Venture Partner will provide match funding by way of seed funding and equity and bring in resources and skills to drive the project forward, so as to complement the input of the University’s current team;
for its core SA1 Estate development proposals (the Box Village and Innovation Precinct) the University anticipates being able to provide additional support in the form of funding awarded as part of the City Deals Programme, if its application is approved – these phases may be procured under separate lots and be subject to additional governance controls to satisfy funding criteria;
returns in the Joint Venture will be shared in proportions to be determined through the procurement process so that the University can be assured of maximising its returns in light of its contributions; and
the Joint Venture Partner will have day to day responsibility for driving forward development proposals, value engineering and optimising plot values, subject to certain key decisions being referred to a supervisory board of the Joint Venture consisting of representatives of the University and the Joint Venture Partner – this will ensure that matters of key importance to the University, or relevant to its constitution and/or Charitable status (including the protection of its investment), will require University input.
II.2.14) Additional information
The University's estimate of the value of this procurement (in the region of GBP203m) is based on the following assumptions:
Box Village and Innovation Precinct - GBP28m
Other development potential - GBP175m
The University anticipates development profits of circa GBP30m, which would be shared in agreed proportions between the University and Joint Venture Partner.