Hertfordshire County Council (the Council) is seeking a partner to support it in moving to an innovative Property Delivery Model. The Council has a substantial portfolio of surplus land and property that can either be disposed of or developed. There is a consensus of opinion within the Council that there is a need to pursue an alternative model where the Council takes more of an active role in development with the aim of improving the financial returns to the Council and pace of delivery. The Council is therefore seeking a strategic partner with development and funding expertise to work with it to identify opportunities from its land holdings and potentially those of its partners, and bring forward development and funding on these sites. The Council also reserves the right to pursue investment opportunities and land acquisitions during the lifetime of the partnership.
This procurement is being conducted by the Council on behalf of itself and the twelve members of the Hertfordshire Property Partnership (‘HPP’). More details regarding the HPP are included in the Descriptive Document. Whilst no members of the HPP are obliged to participate in any works ordered as a result of this procurement, all are entitled to do so, as determined in their sole discretion. In addition to the Council, the following members of the HPP have expressed interest in this procurement:
North Hertfordshire District Council;
Broxbourne Borough Council;
The Police and Crime Commissioner for Hertfordshire;
Stevenage Borough Council;
Dacorum Borough Council;
East Herts District Council; and
Watford Borough Council.
The purpose of this competition is to procure a single strategic partner for the Council for a contract term of 15 years with the ability to extend by one or more periods up to a further aggregate of 5 years. A Prior Information Notice requesting soft marking testing in preparation of a formal procurement was issued on 13 December 2016. The partner will provide its development expertise, equity investment and access to private funding. The partnership will help select and then fund and deliver a programme of sites (including residential, commercial, community and other schemes) which are identified and declared as surplus by the Council and its partners. The partnership will select, according to the type and complexity of site or package of sites the most appropriate development and construction partners to deliver the site. The Council and its partner will share in any financial returns from the sale of the development sites in a manner that is commensurate with the risks taken.
The minimum requirements of the partner include:
— To optimise opportunities from a portfolio of property assets that will generate new long term financial returns (both capital and revenue);
— The use of the partnership model must deliver a greater total financial return to the Council than the return which could be achieved through its current approach;
— To drive the pace of development;
— To develop a quality brand for the developments, aimed at safeguarding the long term financial prosperity of the partnership; and
— To build a long term relationship with a partner with aligned objectives / visions and to utilise their expertise.
The total Gross Development Value (GDV) is estimated to be in the region of 2 000 000 000 000 (GBP), if all of the initial tranche of 12 sites, plus additional potential sites (approximately 40 in number) and two potential urban extension sites are developed via the partnership. The HPP could potentially offer further sites in addition.
Economic operators are requested to submit any queries in relation to this opportunity, the Selection Questionnaire (SQ) or this notice through the eTendering system www.supplyhertfordshire.uk (see Additional Information VI.3)
Please ensure to quote: ‘Creation of a New Property Delivery Model for Hertfordshire County Council’ as the subject reference within any email correspondence. The deadline for uploading your Selection Questionnaire onto the In-Tend Portal is 12:00 noon on 31.5.2017.
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