PL0360 Shrub Hill Development Partner

Procurement reference

PL0360

Procurement description

The Opportunity- UPDATED 03.11.2026

The original deadline for request to participate was 12pm on 3 November 2026. Following the issue of certain clarifications, this deadline is extended until 5pm on 9th November 2026 to allow sufficient time for consideration to be given to those issued clarifications.

Worcestershire County Council ("the Authority") is seeking to appoint a long-term Development Partner to help unlock and deliver the transformational Shrub Hill Regeneration Quarter, a landmark 35-acre regeneration opportunity in the heart of Worcester.

The successful partner will work collaboratively with the Authority and its public sector partners to shape, de-risk and deliver a residential-led mixed-use development that will create a vibrant new destination connecting Worcester Shrub Hill Train Station with Worcester city centre.

Key features of the opportunity include:

A strategic 35-acre regeneration area , offering significant placemaking and development potential.

Council ownership of the entirety of Phase 1, comprising approximately 9.7 acres, providing a clear route to early delivery.

An adopted Supplementary Planning Document (SPD) that establishes the vision and development principles while retaining flexibility to respond to market opportunities.

Significant public sector investment already secured through Towns Fund and Brownfield Land Release Fund programmes, helping to reduce development risk and accelerate delivery.

A highly sustainable central location with direct access to rail services, supporting national objectives to increase development around transport hubs.

Potential access to up to £5 million of additional Towns Fund support for enabling and pre-construction activities, subject to approvals.

Potential interest for a new Community Diagnostics Centre (CDC), providing an early occupier and catalyst for activity and investment within the regeneration area.

Strong momentum across the project, with site preparation works completed, funding secured and public sector partners committed to bringing forward the vision.

The Authority is seeking an experienced and financially robust partner capable of working collaboratively to unlock the full potential of Shrub Hill and deliver a high-quality, sustainable and commercially viable regeneration programme over the long term.

Main category

Works

Additional categories

Services

Delivery regions

• UKG12 - Worcestershire

Total value (estimated, excluding VAT)

90000000 GBP to 90000000GBP

Contract dates (estimated)

01 June 2027, 00:00AM to 31 May 2032, 23:59PM

Extension end date (if all the extensions are used): 31 May 2037

Worcestershire County Council

Procedure type

Competitive flexible procedure

Is the total value above threshold?

Above threshold

CPV classifications

• 45110000 - Building demolition and wrecking work and earthmoving work
• 70111000 - Development of residential real estate
• 71000000 - Architectural, construction, engineering and inspection services
• 92522200 - Preservation services of historical buildings

Delivery regions

• UKG12 - Worcestershire

Lot value (estimated)

90000000 GBP Excluding VAT

108000000 GBP Including VAT

Criteria used to select suppliers to tender for this lot

true

Contract start date (estimated)

01 June 2027, 00:00AM

Contract end date (estimated)

31 May 2032, 23:59PM

Extension end date (estimated)

31 May 2037, 23:59PM

Can the contract be extended?

Yes

Description of extensions

There will be a longstop date of five years from the date of the Development Agreement for Lease for the satisfaction of all conditions to allow for the draw down of a development lease for each phase of Development within Phase 1 (to be extended to ten years by agreement including where additional land within the Shrub Hill Quarter area is incorporated at a later date).

Does the lot include options?

Yes

Description of options

The right to additional purchases while the contract is valid

Options relates to associated professional services.

Participation

Award criteria

Payment terms

30 day payment terms

Description of risks to contract performance

• The future requirements for the refurbishment, redevelopment, partial retention or potential selective demolition of heritage assets within the regeneration area may evolve as further surveys, technical investigations, viability assessments and planning discussions are undertaken, particularly in relation to the Engine Works and other historic buildings.

• The scope, timing and extent of enabling infrastructure works may require amendment following the completion of further technical investigations, including sewer diversion requirements, utilities infrastructure, ground conditions and site preparation works.

• The regeneration programme may be affected by the availability, timing, conditions or reallocation of public sector grant funding, including Towns Fund, Brownfield Land Release Fund and other funding opportunities which may become available during the term of the Development Agreement.

• The proposed NHS Community Diagnostics Centre may proceed, be amended or not proceed, which could require changes to site boundaries, development parcels, infrastructure requirements, car parking provision, development phasing and associated obligations.

• Additional land and property interests within the wider Shrub Hill Quarter may be acquired by the Authority or become available during the term of the Development Agreement, requiring amendments to the scope of the partnership and development programme.

• The extent and timing of development parcels may require amendment to reflect planning requirements, viability considerations, market conditions, stakeholder requirements or changes to the agreed phasing strategy.

• Additional public realm, transport, active travel, rail connectivity, environmental or infrastructure requirements may emerge through the planning process, engagement with statutory consultees or funding bodies, or through the evolution of the wider masterplan.

• The long-term regeneration strategy may require modification to respond to changes in national, regional or local planning policy, funding programmes, transport initiatives or Local Government Reorganisation arrangements impacting the project area.

The Authority considers that these risks may jeopardise the performance of the contract but, due to the nature of the risks, due to the long-term nature and complexity of the regeneration project, the precise nature and extent of any resulting changes cannot reasonably be determined at the time of contract award . Therefore, the Authority reserves the right to modify the awarded contract to address the risks in accordance with Schedule 8 of the Act.