Section one: Contracting authority/entity
one.1) Name and addresses
Gloucester City Council
Gloucester City Council, North Warehouse, The Docks
Gloucester
GL1 2FB
Contact
Mr Philip Ardley
Philip.Ardley@gloucester.gov.uk
Country
United Kingdom
NUTS code
UKK13 - Gloucestershire
Internet address(es)
Main address
one.4) Type of the contracting authority
Regional or local authority
one.5) Main activity
General public services
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
The Forum, King's Quarter, Gloucester
Reference number
DN520087
two.1.2) Main CPV code
- 70112000 - Development of non-residential real estate
two.1.3) Type of contract
Services
two.1.4) Short description
The Council will enter into a development funding agreement (DFA) with RG17 Limited and Reef Estates Limited (which are connected organisations) for a mixed use, urban campus known as King’s Quarter. The Council and Reef Estates Limited both have land interests in the site. They will deliver retail, leisure and office space, dwellings and a hotel together with a multi-storey car park. On completion of the development Reef Estates Limited will transfer its land interest to the Council. The development will be undertaken in 2 phases. Works required to deliver the development (and a number of consultancy services) will be procured in accordance with an OJEU or UK Find a Tender procedures or under Frameworks. Reef/RG17 will also provide management and maintenance services for 5 years. RG17 and Reef (or a group member) will take a 5 year lease of incubator offices and provide a guarantee to the Council in connection with rent from the hotel.
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £94,000,000
two.2) Description
two.2.2) Additional CPV code(s)
- 70111000 - Development of residential real estate
- 70130000 - Letting services of own property
- 70220000 - Non-residential property renting or leasing services
- 70332000 - Non-residential property services
two.2.3) Place of performance
NUTS codes
- UKK13 - Gloucestershire
two.2.4) Description of the procurement
The Council, RG17 Limited and Reef Estates Limited consider their arrangement to be a joint endeavour to work together to revitalise an area of the City Centre. An element of the arrangements includes an obligation on RG17Limited / Reef Estates Limited to lease the proposed incubator office space for 5 years and further to provide a guarantee to the Council in relation to rental income from the proposed hotel.
In order to be transparent the Council has listed the total value at £94,000,000 (Indexed) – some 86% of that value will be subject to public procurement. OJEU procurement or Frameworks (for Phase 1) and after 31st December 2020 under the UK's 'Find a Tender Procedure' or existing OJEU Frameworks which the Council has access to.
The development will be delivered in two Phases. Phase 1 is a site in Market Parade Gloucester City Centre and has a value of approximately £8 million (Indexed).This will deliver retail and residential space.
Phase 2 will be centred at the Forum, King's Quarter site Gloucester City Centre and has a value of approximately £86 million (indexed). This phase will deliver office, hotel and leisure space, together with a multi-storey car park. Phase 2 will be subject to a viability test which may result in changes to the uses and size of buildings delivered or even that Phase 2 does not proceed. The medium and long term economic impact of Covid19 on urban spaces is still uncertain.
The parties may enter into ancillary agreements with each other and/or with those third parties which they procure to provide development services/works.
The parties also contemplate entering into lease and guarantee agreements with each other in order to give effect to RG17 Limited/Reef Estates Limited's commitment to lease the proposed incubator office space and provide a guarantee to the Council in relation to rental income from the proposed hotel.
RG17 Limited and Reef Estates Limited are part of the same group of companies and it is possible (though not expected) that another of their group companies could be involved in these arrangements.
As part of the arrangements RG17 Limited/Reef Estates Limited will also provide general management and maintenance services for a period of 5 years.
two.2.11) Information about options
Options: No
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Award of a contract without prior publication of a call for competition in the cases listed below
- The procurement falls outside the scope of application of the regulations
Explanation:
Award of a contract without prior publication of a call for competition in the Official Journal of the European Union in the cases listed below
•
The procurement falls outside the scope of application of the directive
Explanation:
The Council relies on the ground provided in Article 32(2)(b)(iii) of Directive 2014/24/EU and Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015 as this contract concerns assets which are subject to exclusive rights. Reef Estates Limited have an option over part of the land whereupon the development will take place. Accordingly, the agreement between the Council and Reef Estates Limited cannot be entered into with anyone else. The rights held by Reef Estates Limited/RG17 Limited are exclusive in nature. The Council would not be entering into an agreement to undertake this development but for the opportunity brought to it by RG17 Limited / Reef Estates Limited.
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: No
Section five. Award of contract/concession
Title
The Forum, King's Quarter
A contract/lot is awarded: Yes
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract
13 January 2021
five.2.2) Information about tenders
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor/concessionaire
RG17 LIMITED
51 Welbeck Street
London
W1G 9HL
Country
United Kingdom
NUTS code
- UKI32 - Westminster
National registration number
10721191
The contractor/concessionaire is an SME
No
five.2.4) Information on value of contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession: £94,000,000
five.2.5) Information about subcontracting
The contract/lot/concession is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
Proportion: 86 %
Short description of the part of the contract to be subcontracted
The contract/lot/concession is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
Value excluding VAT: 81 000 000.00 GBP
Proportion: 86 %
Short description of the part of the contract to be subcontracted:
The Council and its partners will procure construction works (and allied consultancy services) in accordance with an OJEU procedure or from an OJEU procured framework agreement (for Phase 1 - procurement has commenced) or using UK Find a Tender procedures for procurements which commence after 31 December 2020.
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
Royal Courts of Justice
Starnd
London
WC2A 2LL
Country
United Kingdom
six.4.2) Body responsible for mediation procedures
Royal Courts of Justice
Strand
London
WC2A 2LL
Country
United Kingdom
six.4.4) Service from which information about the review procedure may be obtained
Royal Courts of Justice
Strand
London
WC2A 2LL
Country
United Kingdom