Section one: Contracting authority/entity
one.1) Name and addresses
London Borough of Lambeth
Town Hall, Brixton Hill
London
SW2 1RW
Contact
Valentine Onwuchekwa
Telephone
+44 207653479
Country
United Kingdom
Region code
UKI45 - Lambeth
National registration number
n/a
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
Delivery Partner for Growing Brixton’s Rec Quarter – 49 Brixton Station Road and 6 Canterbury Crescent
two.1.2) Main CPV code
- 45000000 - Construction work
two.1.3) Type of contract
Works
two.1.4) Short description
The Council intends to enter into a deed of variation with London Square Developments Limited (the Developer) and London Square Limited (the Guarantor) in relation to an existing development agreement between the parties (the Underlying Contract) which was entered into on 28 September 2022 to ensure the viability and deliverability of the scheme under the Underlying Contract. The key variations comprise a reduction in the minimum level of commercial workspace required in alignment with Local Plan policy for mixed-use regeneration schemes, a reduction in minimum affordable housing levels from 50% to 40% and a reduction in the Council's land receipt in line with revised financial modelling and which represents best consideration in today's market.
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: £161,978,600
two.2) Description
two.2.2) Additional CPV code(s)
- 45000000 - Construction work
- 70000000 - Real estate services
- 70100000 - Real estate services with own property
two.2.3) Place of performance
NUTS codes
- UKI45 - Lambeth
two.2.4) Description of the procurement
The Council intends to enter into a deed of variation with the Developer and the Guarantor in relation to an existing development agreement between the parties (the Underlying Contract) to address changing circumstances since the Underlying Contract was entered into. The location, duration and nature of the works will remain broadly the same, still delivering new build housing, workspace, street market facilities and public realm improvements subject to a reduction in minimum affordable housing levels to 40% and a reduction in the minimum required level of workspace reprovision in alignment with Local Plan policy for mixed-use regeneration schemes. The Council has received commercial advice to review the updated financial appraisals and ensure that the costs and revenues are commercially reasonable, reflective of the wider market and represent best consideration for the Council
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:
This VEAT gives notice that the Council is entering into a deed of variation (the "Deed") to amend the Underlying Contract. A procurement procedure is not necessary on the basis that the award of the Contract is permitted pursuant to regulation 72(1)(c) of the Public Contracts Regulations 2015. The need for modification has been brought about by significant domestic and international economic turbulence, including substantial build cost inflation, rises in UK interest rates and ongoing shifts in how businesses use and occupy workspace post-Covid together with the implementation of legislative and regulatory changes with respect to Building Safety . The overall scheme remains broadly the same in nature delivering newbuild housing, workspace, street market facilities and public realm improvements. The Council has obtained external commercial advice which has reviewed the revised financial appraisal to confirm that it is within reasonable tolerances based on industry benchmarking. The Developer's percentage return has reduced. Moreover, the proposed variation is also not substantial within the meaning of regulation 72(1)(e) of the Public Contracts Regulations 2015.
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: 2025/S 000-004447
Section five. Award of contract/concession
Contract No
43828
Title
Delivery Partner for Growing Brixton’s Rec Quarter – 49 Brixton Station Road and 6 Canterbury Crescent
A contract/lot is awarded: Yes
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract
7 January 2025
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
London Square Developments Limited
One York Road, Uxbridge, Middlesex, UB8 1RN
Middlesex
UB8 1RN
Country
United Kingdom
NUTS code
- UKI74 - Harrow and Hillingdon
National registration number
07160957
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: £161,978,600
Section six. Complementary information
six.3) Additional information
For information and transparency, the Council is publishing this VEAT notice demonstrating its intention to enter into a deed of variation with the Developer and the Guarantor in relation to an existing development agreement in accordance with Regulation 72 of the Public Contracts Regulations 2015. This contract (the deed of variation) has not yet been entered into and, for information only, a contract award notice will be published following conclusion of the contract (deed of variation). In accordance with Regulation 92 to 104 of the Public Contract Regulations 2015 (as amended), the Authority will incorporate a minimum 10 calendar day standstill period starting from the date when this notice is published. A modification notice was also published in relation to this proposed Deed of Variation on 19/02/2025 (2025/S 000-006029).
six.4) Procedures for review
six.4.1) Review body
The High Court
United Kingdom London WC2A 2LL
United Kingdom London
WC2A 2LL
Country
United Kingdom