Section one: Contracting authority
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 R Blue Regen GL Limited and Reef Estates Limited (which are connected organisations) for a mixed use, urban campus known as King’s Quarter. The Council and a group company of Reef Estates Limited (R Blue Capital Ltd) 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 a group company of 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/R Blue Regen GL Limited will also provide management and maintenance services for 5 years. R Blue Regen GL Limited 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, R Blue Regen GL 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 R Blue Regen GL Limited / Reef Estates Limited (and or a group company) 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. The Council and group company of Reef Estates Ltd (R Blue Capital Ltd) both have land interests in the site and it is the intention of Reef Estates Ltd to ultimately transfer their land interests to the Council.
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 R Blue Regen GL Limited / Reef Estates (and or a group company) commitment to lease the proposed incubator office space and provide a guarantee to the Council in relation to rental income from the proposed hotel.
R Blue Regen GL 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 R Blue Regen GL Limited/Reef Estates Limited will also provide general management and maintenance services for a period of 5 years.
two.2.5) Award criteria
Cost criterion - Name: Cost / Weighting: 100
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:
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 (or a group company) have an option over part of the land whereupon the development will take place. Accordingly, the agreement between the Council and Reef Estates (or a group company) cannot be entered into with anyone else. The rights held by Reef Estates Limited/R Blue Regen GL 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 R Blue Regen GL Limited / Reef Estates Limited. For the avoidance of doubt, those aspects of the joint endeavour that the Council considers are properly subject to the Public Contracts Regulations 2015 will be subject to public procurement.
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: No
four.2) Administrative information
four.2.1) Previous publication concerning this procedure
Notice number: 2021/S 001-000825
Section five. Award of contract
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
4 February 2021
five.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
R Blue Regen GL Ltd and Reef Estates Ltd
51 Welbeck Street
London
W1G 9HL
Country
United Kingdom
NUTS code
- UKI32 - Westminster
National registration number
13163289 and 04302220
The contractor is an SME
Yes
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £94,000,000
five.2.5) Information about subcontracting
The contract is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
Value excluding VAT: £81,000,000
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
Strand
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