- 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
UKH23 - Hertfordshire
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
https://www.hertfordshire.gov.uk/home.aspx
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 - UK Core
Reference number
CR19851
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 UK Core
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: £2,000,000,000
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 UK Core Real
Estate mandates of the ACCESS Pool members.
The procurement will be carried out as a two stage Restricted procedure.
At the conclusion of the procurement procedure, each named Authority will enter into its
own contract with the successful Supplier at their own discretion.
The duration of the contract(s) shall be thirty (30) years, subject to a five (5) yearly review
cycle during this period.
Full details of the requirement can be found in the Specification at Annex 1 of the ITT
documentation by registering within Hampshire's instance of the In-Tend e-procurement
platform at the following URL: https://in-tendhost.co.uk/hampshire/aspx/Home
two.2.5) Award criteria
Price
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. £4.9
billion to UK Real Estate, relative to a target exposure of c. £5.8 billion (this is based on each
Authority's current strategic asset allocation and latest overall portfolio valuation). Of this
existing c. £4.9 billion exposure, four Authorities have direct UK core property portfolios
totalling c. £2.5 billion and the other seven Authorities have indirect UK core exposure
allocations (via fund of funds allocations or single fund allocations) totalling c. £2.1 billion. In
addition, c. £0.3 billion in aggregate has been allocated by some Authorities to alternative
UK strategies via single-fund allocations.
The current expectation is that the c. £2.1 billion indirect UK core exposure will create the
foundation of the ACCESS pooled UK Core 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. £2.1 billion indirect UK core exposure is expected
to be transitioned to the pool. There are some existing allocations which are not expected to
be redeemed initially, and it is also expected that some of the redemption proceeds may be
allocated to a separate ACCESS UK Alternative Real Estate solution.
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
the 31 March 2022 triennial actuarial valuations (these are expected to be completed by Q1
2023). The results of these reviews may affect each respective Authority's target allocation
to UK Core Real Estate. This may have the impact of further increasing the capital that
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Authorities will collectively allocate to the UK Core Real Estate pool (it is also possible that
the results may lead to a decrease in the amount allocated). For context, were each
Authority with existing indirect UK core real estate exposure to increase their target
exposure by 1%, this would result in an additional c. £0.3 billion being potentially available to
be allocated to the pool.
ii. It has been assumed that a portion (c. £0.3 billion) of the total redemption proceeds from
the existing indirect UK core exposure will be allocated to the ACCESS UK Alternative Real
Estate solution. However if this does not turn out to be the case then this will likely be
allocated to the ACCESS UK Core Real Estate mandate.
iii. Based on discussions with some Authorities, it has further been assumed that c. £0.3
billion in existing single-fund allocations will not be redeemed immediately for strategic
reasons. However if this does not turn out to be the case then this will likely be allocated to
the ACCESS UK Core Real Estate mandate.
iv. For the anticipated initial mandate size for the pool (£0.75 billion - £1.25 billion) the low
end of the range has been determined by assuming that only around half of the expected
redemptions will be transitioned to the pool i.e. there is scope for an additional c. £0.75
billion to be allocated to the pool if all respective Authorities ultimately decide to transition.
v. In addition to the seven Authorities with existing indirect UK core exposure, there are four
further Authorities who have existing portfolios of direct UK core exposure. As noted
previously, it is anticipated that initially one of these Authorities may appoint the investment
manager to the ACCESS pooled solution to manage its own direct holdings. However, over
the life of the mandate it may be the case that one, two or all of the other three Authorities
will seek a similar arrangement. Across these three Authorities, the current aggregated
market value of their direct UK portfolios is c. £1.8 billion.
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 authorities' current
exposure of £4.9 billion as initial assets in the mandate; a contract length of 30 years; a
maximum blended fee rate of 50 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.
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: Yes
four.2) Administrative information
four.2.1) Previous publication concerning this procedure
Notice number: 2022/S 000-022907
Section five. Award of contract
Title
ACCESS Pool Investment Manager for Real Estate - UK Core
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: 5
Number of tenders received from SMEs: 0
Number of tenders received by electronic means: 5
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
CBRE Investment Management Ltd
3rd Floor, One New Change
London
EC4M 9AF
Country
United Kingdom
NUTS code
- UKI - London
Companies House
03805106
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: £2,000,000,000
Total value of the contract/lot: £2,000,000,000
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
High Court of England & Wales
London
Country
United Kingdom