Find a TenderAwarded without competition

Published 15 Jan 2021, 09:31 GMT

Official UK procurement notice

The Forum, King's Quarter, Gloucester

Official notice

Authority: Gloucester City Council (Local council)

ServicesAward procedure without prior publication of a call for competition

Sectors: Real estate services (70) Delivery: South West (UKK13)

Awarded value£94,000,000published contract · exc. VAT

Awarded 13 Jan 2021no call for competition

Awarded to RG17 LIMITED

What is being bought

Published requirement description

The Council will enter into a development funding agreement (DFA) with RG17 Limited and Reef Estates Limited (which are connected organisations) for a mixed use, urban campus known as King’s Quarter. The Council and Reef Estates Limited both have land interests in the site. They will deliver retail, leisure and office space, dwellings and a hotel together with a multi-storey car park. On completion of the development Reef Estates Limited will transfer its land interest to the Council. The development will be undertaken in 2 phases. Works required to deliver the development (and a number of consultancy services) will be procured in accordance with an OJEU or UK Find a Tender procedures or under Frameworks. Reef/RG17 will also provide management and maintenance services for 5 years. RG17 and Reef (or a group member) will take a 5 year lease of incubator offices and provide a guarantee to the Council in connection with rent from the hotel.

CPV: Development of non-residential real estate · Development of residential real estate · Letting services of own property · Non-residential property renting or leasing services · Non-residential property services

The lotProcurement structure

single lot · no lot value published

Lot #1The Council, RG17 Limited and Reef Estates Limited consider their arrangement to be a…

The Council, RG17 Limited and Reef Estates Limited consider their arrangement to be a joint endeavour to work together to revitalise an area of the City Centre. An element of the arrangements includes an obligation on RG17Limited / Reef Estates Limited to lease the proposed incubator office space for 5 years and further to provide a guarantee to the Council in relation to rental income from the proposed hotel.

In order to be transparent the Council has listed the total value at £94,000,000 (Indexed) – some 86% of that value will be subject to public procurement. OJEU procurement or Frameworks (for Phase 1) and after 31st December 2020 under the UK's 'Find a Tender Procedure' or existing OJEU Frameworks which the Council has access to.

The development will be delivered in two Phases. Phase 1 is a site in Market Parade Gloucester City Centre and has a value of approximately £8 million (Indexed).This will deliver retail and residential space.

Phase 2 will be centred at the Forum, King's Quarter site Gloucester City Centre and has a value of approximately £86 million (indexed). This phase will deliver office, hotel and leisure space, together with a multi-storey car park. Phase 2 will be subject to a viability test which may result in changes to the uses and size of buildings delivered or even that Phase 2 does not proceed. The medium and long term economic impact of Covid19 on urban spaces is still uncertain.

The parties may enter into ancillary agreements with each other and/or with those third parties which they procure to provide development services/works.

The parties also contemplate entering into lease and guarantee agreements with each other in order to give effect to RG17 Limited/Reef Estates Limited's commitment to lease the proposed incubator office space and provide a guarantee to the Council in relation to rental income from the proposed hotel.

RG17 Limited and Reef Estates Limited are part of the same group of companies and it is possible (though not expected) that another of their group companies could be involved in these arrangements.

As part of the arrangements RG17 Limited/Reef Estates Limited will also provide general management and maintenance services for a period of 5 years.

Delivery: South West

70111000 Development of residential real estate 70130000 Letting services of own property 70220000 Non-residential property renting or leasing services 70332000 Non-residential property services

Procedure terms & legal framework

From the official record

Procedure method: Award procedure without prior publication of a call for competition
Legal basis: CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)
Procurement category: Services
Notice status: Awarded without competition
Procurement threshold: Unspecified in notice
Regulatory regime: Standard
Commercial structure: Stand-alone contract (no framework)
Competition type: Direct award (no call for competition)
GPA / WTO covered: Unspecified in notice
Recurring procurement: Unspecified in notice
First published: 15 Jan 2021, 09:31 GMT
Last source update: 15 Jan 2021, 09:31 GMT
Authority reference: DN520087
FTS notice number: 2021/S 000-000825
Classification (CPV): Development of non-residential real estateDevelopment of residential real estateLetting services of own propertyNon-residential property renting or leasing servicesNon-residential property services
Delivery area: South West (UKK13)
Official registry OCID: ocds-h6vhtk-028a8f Find a Tender

Why no open competition: The procurement falls outside the scope of application of the directive
Published justification: Award of a contract without prior publication of a call for competition in the Official Journal of the European Union in the cases listed below
•
The procurement falls outside the scope of application of the directive
Explanation:
The Council relies on the ground provided in Article 32(2)(b)(iii) of Directive 2014/24/EU and Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015 as this contract concerns assets which are subject to exclusive rights. Reef Estates Limited have an option over part of the land whereupon the development will take place. Accordingly, the agreement between the Council and Reef Estates Limited cannot be entered into with anyone else. The rights held by Reef Estates Limited/RG17 Limited are exclusive in nature. The Council would not be entering into an agreement to undertake this development but for the opportunity brought to it by RG17 Limited / Reef Estates Limited.

Commercial outcome & contract awards

Published awards, contracts and bid statistics, not a forecast

Awards 1

Awarded value £94,000,0001 contract exc. VAT

Contracts signed 1latest 13 Jan 2021

Awarded to	Value	Date	Status
RG17 LIMITEDThe Forum, King's QuarterSubcontracting: The contract/lot/concession is likely to be subcontracted Value or proportion likely to be subcontracted to third parties Value excluding VAT: 81 000 000.00 GBP Proportion: 86 % Short description of the part of the contract to be subcontracted: The Council and its partners will procure construction works (and allied consultancy services) in accordance with an OJEU procedure or from an OJEU procured framework agreement (for Phase 1 - procurement has commenced) or using UK Find a Tender procedures for procurements which commence after 31 December 2020.	£94,000,000 †	—	Awarded

Contracts

The Forum, King's Quarter · RG17 LIMITED
Signed
13 Jan 2021
Value
£94,000,000
Status
active

Contracting authority & participating public bodies

Gloucester City Council

Contracting authorityLocal CouncilRegional or local authorityGeneral public services Gloucester City Council, North Warehouse, The Docks, Gloucester, South West, GL1 2FBContact name, email

Dispute resolution & review bodies

Royal Courts of JusticeReview body London

Bidders & participating suppliers

1 commercial party on the notice

RG17 LIMITEDAwarded supplier10721191 51 Welbeck Street, London, London, W1G 9HL

Official documents & specifications

Official links; attachments are not copied

No document links were published on the notice.