- 1. HAMPSHIRE COUNTY COUNCIL
- 2. Hertfordshire County Council
- 3. Isle of Wight Council
- 4. Kent County Council
- 5. Norfolk County Council
- 6. Suffolk County Council
- 7. West Northamptonshire Council
- 8. West Sussex County Council
- 9. East Sussex County Council
- 10. Cambridge City Council
- 11. Essex County Council
Section one: Contracting authority
one.1) Name and addresses
HAMPSHIRE COUNTY COUNCIL
The Castle
WINCHESTER
SO238ZB
Contact
Samantha Pullinger
samantha.pullinger@hants.gov.uk
Telephone
+44 1962847826-847826
Country
United Kingdom
NUTS code
UKJ36 - Central Hampshire
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.1) Name and addresses
Hertfordshire County Council
Hertford
Country
United Kingdom
NUTS code
UKH2 - Bedfordshire and Hertfordshire
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.1) Name and addresses
Isle of Wight Council
Newport
Country
United Kingdom
NUTS code
UKJ34 - Isle of Wight
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.1) Name and addresses
Kent County Council
Maidstone
Country
United Kingdom
NUTS code
UKJ4 - Kent
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.1) Name and addresses
Norfolk County Council
Norwich
Country
United Kingdom
NUTS code
UKH1 - East Anglia
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.1) Name and addresses
Suffolk County Council
Ipswitch
customer.services@suffolk.gov.uk
Country
United Kingdom
NUTS code
UKH14 - Suffolk
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.1) Name and addresses
West Northamptonshire Council
Northampton
enquiries.nbc@westnorthants.gov.uk
Country
United Kingdom
NUTS code
UKF24 - West Northamptonshire
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
https://www.westnorthants.gov.uk/
one.1) Name and addresses
West Sussex County Council
Chichester
Country
United Kingdom
NUTS code
UKJ2 - Surrey, East and West Sussex
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
https://www.westsussex.gov.uk/
one.1) Name and addresses
East Sussex County Council
Lewes
purchasing.queries@eastsussex.gov.uk
Country
United Kingdom
NUTS code
UKJ22 - East Sussex CC
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
https://www.eastsussex.gov.uk/
one.1) Name and addresses
Cambridge City Council
Cambridge
Country
United Kingdom
NUTS code
UKH1 - East Anglia
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.1) Name and addresses
Essex County Council
Chelmsford
Country
United Kingdom
NUTS code
UKH3 - Essex
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.2) Information about joint procurement
The contract involves joint procurement
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
ACCESS Pool Investment Manager for Real Estate - Global
Reference number
EX20230
two.1.2) Main CPV code
- 66131100 - Pension investment services
two.1.3) Type of contract
Services
two.1.4) Short description
The Authority is seeking an investment manager to manage and grow the assigned Global
Real Estate mandates of the ACCESS pool members.
This procurement is being undertaken by Hampshire County Council (the Authority) on
behalf of the Administering Authorities who together comprise the ACCESS Pool.
The ACCESS Pool is a collaboration of 11 like-minded Local Government Pension Scheme
Authorities, investing the pensions of over one million members, delivering strong
investment performance, achieving greater cost efficiency and benefiting from the best of
local authority procurement. Further information regarding the ACCESS Pool can be found
here: https://www.accesspool.org/.
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: £250,000,000
two.2) Description
two.2.3) Place of performance
NUTS codes
- UKF2 - Leicestershire, Rutland and Northamptonshire
- UKH - East of England
- UKJ - South East (England)
two.2.4) Description of the procurement
Hampshire County Council is running this procurement on behalf of ACCESS pool and is
seeking to appoint an investment manager to manage and grow the assigned Global Real
Estate mandates of the ACCESS Pool members.
The procurement will be carried out as a two stage Restricted procedure.
Real Estate mandates of the ACCESS Pool members.
The procurement will be carried out as a two stage Restricted procedure.
The duration of the contract(s) shall be thirty (30) years, subject to a five (5) yearly review
cycle during this period.
two.2.5) Award criteria
Quality criterion - Name: Quality / Weighting: 80%
Price - Weighting: 20%
two.2.11) Information about options
Options: Yes
Description of options
Across the 11 ACCESS Authorities there is currently a total aggregated exposure of c. £500m
to Global Real Estate (with an additional c. £150m in undrawn commitments), relative to an
estimated target exposure of c. £800m (this is based on each Authority's current strategic
asset allocation and latest overall portfolio valuation). Currently 3 out of the 11 Authorities
have an exposure to Global Real Estate.
The current expectation is that the c. £500m current aggregated exposure to Global Real
Estate will create the foundation of the ACCESS pooled Global Real Estate mandate. The
respective Authorities are expected to redeem from their fund of funds allocations/ single
fund allocations and invest the redemption proceeds into the pool. However, although
possible, not all the c. £500m Global Real Estate exposure is expected to be initially
transitioned to the pool. In particular, there is an existing allocation of c. £100m which is
invested in a locked-up vehicle, and therefore not expected to be redeemed initially.
In addition, given that in aggregate, the Authorities are underweight their strategic asset
allocation targets, it is anticipated that there will be a further c. £150m allocated to the pool
in order to meet these targets.
In practical terms, it is anticipated that the initial mandate size for the pool will be between c.
£400m and c. £550m.
Whilst this estimated mandate size will form the base case for the purposes of this
procurement exercise, there is scope for the total mandate size to significantly increase in
scale (and - although unlikely based on information available currently - to possibly
decrease), both initially and throughout the life of the mandate, due to the following factors:
(i) Authorities are currently undertaking reviews of their strategic asset allocations following
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the 31 March 2022 triennial actuarial valuations (these are expected to be completed by Q1
2023). For the 3 Authorities with existing exposure to Global Real Estate, the results of
these reviews may affect their target allocations. This may have the impact of further
increasing the capital that Authorities will collectively allocate to the Global Real Estate pool
(it is also possible that the results may lead to a decrease in the amount allocated). In
addition, there are a further 3 Authorities currently without existing Global Real Estate
allocations, who have indicated that they are looking to add Global Real Estate exposure to
their portfolios. For context, were each of these 3 Authorities to respectively seek a target
Global Real Estate exposure of 3% of their overall portfolios, in total this would result in an
additional c. £300m being potentially available to be allocated to the pool.
(ii) It is not anticipated that the Authority with the existing investment in a locked-up vehicle
(currently c. £100m invested with an additional c. £150m in undrawn commitments) will
initially transition this to the pool. However, as distributions from this investment are
returned to the Authority over time, it is expected that this capital will then be allocated to
the pool i.e. a further c. £250m is expected to ultimately be allocated.
two.2.14) Additional information
Note: The stated contract value is an estimate of fees payable over the life of the contract
based on anticipated mandate size and maximum fees set out in the Pricing Schedule. The
actual fees payable will depend on these and other relevant factors applicable over the
course of the mandate. This amount should not be taken as a guaranteed value or payment.
Specifically, the estimated total contract value shown above has been derived by making a
number of assumptions at the time of writing, which include: the aggregated authority target
exposure of £800 million as initial assets in the mandate; a contract length of 30 years; a
maximum blended fee rate of 40 basis points; a constant asset growth assumption of 6.0%.
p.a. It should be noted that in practice the actual levels of assets, fees and growth rates are
highly likely to differ materially from these assumptions over the term of the mandate. For
further details on the expected size of this mandate, please see 'Project Background' in
Section 1 of the ITT.
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Restricted procedure
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: 2022/S 000-022906
Section five. Award of contract
Title
ACCESS Pool Investment Manager for Real Estate - Global
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
14 February 2023
five.2.2) Information about tenders
Number of tenders received: 3
Number of tenders received from SMEs: 0
Number of tenders received by electronic means: 3
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
CBRE Investment Management Indirect Limited
3rd Floor, One New Change
London
EC4M 9AF
Country
United Kingdom
NUTS code
- UKI - London
Companies House
02076511
Internet address
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Initial estimated total value of the contract/lot: £250,000,000
Total value of the contract/lot: £250,000,000
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
High Court of England & Wales
London
Country
United Kingdom