Section one: Contracting authority/entity
one.1) Name and addresses
The City of Edinburgh Council
Waverley Court, 4 East Market Street
Edinburgh
EH8 8BG
Contact
Graeme McGartland
Graeme.McGartland@edinburgh.gov.uk
Telephone
+44 1314693922
Country
United Kingdom
NUTS code
UKM75 - Edinburgh, City of
Internet address(es)
Main address
Buyer's address
https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00290
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
Agreement for lease at Haymarket Development, Edinburgh
two.1.2) Main CPV code
- 45000000 - Construction work
two.1.3) Type of contract
Works
two.1.4) Short description
The City of Edinburgh Council intends to enter into an agreement for lease for a new hotel at Buildings 2 & 3, Haymarket Development, Edinburgh.
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: £91,250,000
two.2) Description
two.2.2) Additional CPV code(s)
- 45210000 - Building construction work
- 45211360 - Urban development construction work
two.2.3) Place of performance
NUTS codes
- UKM75 - Edinburgh, City of
two.2.4) Description of the procurement
The Council intends to enter into an agreement for lease with The Prudential Assurance Company Limited (the Landlord) for a new hotel at Buildings 2 & 3, Haymarket Development. The new hotel development is to be built on land owned by the Landlord, and on completion leased to the Council for a period of 25 years, with the right to extend the lease for a further period of 5 years. The agreement for lease will include enforceable obligations on the Landlord relating to design and construction and the carrying out of infrastructure and external works in relation to the new hotel. The Council intends to grant a sublease to the Edinburgh International Conference Centre Limited (EICC), or a subsidiary of EICC, who intend to operate the new hotel.
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
Negotiated without a prior call for competition
- The works, supplies or services can be provided only by a particular economic operator for the following reason:
- absence of competition for technical reasons
Explanation:
This procurement is exempt on the basis of Regulation 33(1)(b) (Use of the negotiated procedure without prior publication) of the Public Contracts (Scotland) Regulation 2015. Given both the Landlord’s exclusive rights in the relevant land interests and for technical reasons associated with the requirements of the Council and EICC for the new hotel, the works can be provided only by the landlord and developer of the Haymarket development.
The Council has carried out an extensive due diligence exercise and has satisfied itself that at the point of entering into the agreement for lease only one development site satisfies its stated requirements and objectives. In considering all potential hotel development opportunities the Council identified three key criteria namely (i) the site had to be located in the immediate vicinity of Edinburgh International Conference Centre; (ii) the development had to be able to accommodate a hotel with a capacity of around 400 bedrooms; and (iii) the development had to be one that would allow EICC to achieve its longer-term objective of becoming self-financing. Having explored a number of opportunities and possible options, including commissioning a report from professional advisers, the Council identified the Haymarket development as the only site that satisfied these three key criteria.
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
12 March 2020
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
The Prudential Assurance Company Limited
10 Fenchurch Avenue
London
EC3M 5AG
Country
United Kingdom
NUTS code
- UKI - London
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: £91,250,000
Section six. Complementary information
six.3) Additional information
NOTE: To register your interest in this notice and obtain any additional information please visit the Public Contracts Scotland Web Site at https://www.publiccontractsscotland.gov.uk/Search/Search_Switch.aspx?ID=667196.
(SC Ref:667196)
six.4) Procedures for review
six.4.1) Review body
Court of Session
Parliament House, Parliament Square
Edinburgh
EH1 1RQ
supreme.courts@scotcourts.gov.uk
Telephone
+44 1312252595
Country
United Kingdom