Section one: Contracting authority/entity
one.1) Name and addresses
Mid and South Essex NHS Foundation Trust
Nethermayne
Basildon
SS165NL
Contact
Tracey Leforte
tracey.leforte@southend.nhs.uk
Telephone
+44 1702508120
Country
United Kingdom
NUTS code
UKH37 - Essex Thames Gateway
Internet address(es)
Main address
one.4) Type of the contracting authority
Body governed by public law
one.5) Main activity
Health
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Basildon University Hospital main entrance and retail facility
Reference number
CA7723
two.1.2) Main CPV code
- 45000000 - Construction work
two.1.3) Type of contract
Works
two.1.4) Short description
IV Mid and South Essex NHS Foundation Trust ("MSEFT") intends to enter into an option agreement and ground lease with Noviniti Dev Co 8 Ltd ("Noviniti") in respect of a new main entrance and retail development at Basildon University Hospital, Basildon ("the Hospital"). MSEFT has structured the contractual arrangement as a land transaction exempt from the Public Contracts Regulations 2015.
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Lowest offer: £6,500,000 / Highest offer: £8,000,000 taken into consideration
two.2) Description
two.2.2) Additional CPV code(s)
- 45214710 - Entrance hall construction work
- 45215100 - Construction work for buildings relating to health
- 45215140 - Hospital facilities construction work
- 55900000 - Retail trade services
two.2.3) Place of performance
NUTS codes
- UKH37 - Essex Thames Gateway
two.2.4) Description of the procurement
MSEFT intends to enter into an option agreement and Ground Lease with Noviniti in respect of a new main entrance and retail development at the Hospital. MSEFT has structured the contractual arrangement as a land transaction exempt from the Public Contracts Regulations 2015.
two.2.11) Information about options
Options: 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 subject of this notice is an agreement to be entered into between MSEFT and Noviniti for the grant of an option entitling Noviniti to call for the grant of a 35 years Ground Lease of part of MSEFT's freehold land at the Hospital.
The area which will be subject to the option is defined within the option agreement and the option period will run for an initial period of 39 weeks (subject to extension).
MSEFT has had valuation advice and will grant the Ground Lease at a premium which reflects market value.
If Noviniti exercises the option and calls for the grant of the Ground Lease that Ground Lease will be for a period
of up to 35 years. The Ground Lease is subject to break clauses in favour of MSEFT after 2 years and again at an agreed date reflecting the 30th anniversary of practical completion of the Potential Development (as defined below) by Noviniti.
The Ground Lease anticipates that Noviniti may choose (but with no obligation to do so) to undertake a Permitted Alteration (in accordance with a Licence for Alterations that may be entered into) of a building extension at the Hospital for retail and ancillary uses (the "Potential Development").
The detail of the Potential Development will have been agreed between MSEFT and Noviniti prior to the grant of the option agreement. MSEFT has a right to terminate the Ground Lease if Noviniti has not commenced the works comprising the Potential Development by the date 2 years after the date of the Ground Lease.
MSEFT will have obligations to use reasonable endeavours to assist Noviniti in dealing with matters relating to the planning permission for the Potential Development including entering into third party agreements necessary to facilitate the Potential Development.
The exercise of the option by Noviniti to call for the Ground Lease does not trigger any obligation on Noviniti to undertake or on MSEFT to procure the Potential Development. If Noviniti decides to undertake the Potential Development, (and if MSEFT subsequently so decides) Noviniti and MSEFT may enter into an agreement for lease. The agreement for underlease would allow Noviniti to grant an underlease of the completed development to a third party operator for part of the term of the Ground Lease and a reversionary underlease to MSEFT for the remainder of the term of the Ground Lease. If that agreement is reached MSEFT anticipates that MSEFT, Noviniti and any third party operator will enter into further documents including the agreement for lease, a licence for alterations and underleases of the completed development.
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
A contract/lot is awarded: Yes
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract
22 March 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
Noviniti Dev Co 8 Ltd
The Stables, Churchfield Farm, Harley Way
Peterborough
PE8 5AU
jonathan.houlston@noviniti.co.uk
Country
United Kingdom
NUTS code
- UK - United Kingdom
The contractor/concessionaire is an SME
No
five.2.4) Information on value of contract/lot/concession (excluding VAT)
Lowest offer: £6,500,000 / Highest offer: £8,000,000 taken into consideration
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
Royal Courts of Justice
The Strand
London
WC2A 2LL
Country
United Kingdom