Section one: Contracting authority/entity
one.1) Name and addresses
Basingstoke & Deane Borough Council
Civic Offices
BASINGSTOKE
RG214AH
Contact
Procurement Team
procurement@basingstoke.gov.uk
Telephone
+44 1256844844
Country
United Kingdom
Region code
UKJ37 - North Hampshire
Justification for not providing organisation identifier
Not on any register
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
Unit 6, Viables Business Park, Jays Close, Basingstoke
Reference number
Title Number: HP731710 and HP39175
two.1.2) Main CPV code
- 70332000 - Non-residential property services
two.1.3) Type of contract
Services
two.1.4) Short description
Concerns the proposed lease restructure involving the surrender of the existing ground lease by
Tenant 1 at 6 Jays Close, Viables Business Park, Basingstoke and the granting of two new
Leases to Tenant 1 and a new tenant, Tenant 2. The contracting authority will retain the freehold
relating to both leases. Any development or works to be carried out is subject to an agreement
between Tenant 1 and Tenant 2 only.
The contracting authority is also not procuring a works contract under the Public Contracts
Regulations 2015, arrangement exempt under PCR 10(1)(a).
The total value of the transaction between Tenant 1 and Tenant 2 is unknown. At the time of publication of this notice the rent to be received by the contracting authority following the land transaction excluding VAT is £666,735 per annum.
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: £0.01
two.2) Description
two.2.3) Place of performance
NUTS codes
- UKJ37 - North Hampshire
two.2.4) Description of the procurement
The contracting authority owns the freehold of 6 Jays Close, Viables Business Park, Basingstoke. Tenant 1 occupies 6 Jays Close, Viables Business Park, Basingstoke under the existing headlease, with an unexpired term of approximately 91 years and this remains vested in Tenant 1.
Tenant 1 wishes to surrender the existing headlease and take a lease of a new building to be constructed on part of 6 Jays Close, Viables Business Park, Basingstoke. Tenant 1 has engaged a developer independently of the contracting authority.
The developer has approached the contracting authority to grant a lease to it on part of 6 Jays Close, Viables Business Park, Basingstoke, once Tenant 1 has surrendered their existing headlease. The developer will then become Tenant 2.
Subject to planning agreement and once the transaction is complete, Tenant 2 (the developer) will construct the new premises for Tenant 1 under terms agreed by them independently of the contracting authority. The contracting authority has not procured any works or placed any development obligations on the developer. The development obligations are contained in a separate agreement between Tenant 1 and their chosen developer.
The purpose of the project is for the contracting authority to obtain best rent, Tenant 1 to vacate one premises and occupy a new one and for the developer (Tenant 2) to develop the land on behalf Tenant 1 whilst retaining a long lease over the vacated site.
The agreements between Tenant 1, Tenant 2 and the contracting authority formalise the parties' agreement in respect of the phasing and structure of how the contracting authority will achieve best value, reflecting the commercial and economic reality of the deal, for the land subject to it.
Beyond normal planning obligations on the developer, the contracting authority is not setting out the design or specification for any of the works to be carried out.
The contracting authority's arrangement with Tenant 1 and Tenant 2 is exempt from the PCRs in accordance with Regulation 10(1)(a) as it concerns the rental of land owned by it. Furthermore, the arrangement is also not a public works contracts within the meaning of Regulation 2 of the PCR.
The total value of the transaction between Tenant 1 and Tenant 2 is unknown. In order to meet the requirements of this notice the contract value at section II.1.7 has been stated to be £0.01. At the time of publication of this notice the rent from the resulting leases to be received by the contracting authority following the land transaction excluding VAT is £666,735 per annum.
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 procurement falls outside the scope of the Public Contracts Regulations 2015 as it is an exempt transaction in accordance with Regulation 10(1)(a). The contracting authority is also not procuring a works contract.
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
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
17 July 2023
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
St Modwen Strategic Land Limited
Two Devon Way
Birmingham
B31 2TS
Country
United Kingdom
NUTS code
- UKG31 - Birmingham
Companies House
14521120
The contractor/concessionaire is an SME
No
five.2.4) Information on value of contract/lot/concession (excluding VAT)
Initial estimated total value of the contract/lot/concession: £0.01
Total value of the contract/lot/concession: £0.01
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
Royal Court of Justice
The Strand
London
WC2A 2LL
Country
United Kingdom