Queen Alexandra Hospital, North Car Park, MSCP

Concepts

• queen alexandra hospital
• portsmouth
• construction work
• portsmouth hospitals university nhs trust
• storey car park development
• north car park
• car park building
• portsmouth hospitals university
• hospital
• car park management

Location

Queen Alexandra Hospital, Southwick Hill Road, Portsmouth, PO6 3LY

Description

Portsmouth Hospitals University NHS Trust ("PHUT") intends to enter into an option agreement and ground lease with Noviniti Dev Co 6 Ltd ("Noviniti") in respect of a new multi-storey car park development at Queen Alexandra Hospital, Portsmouth ("the Hospital"). PHUT has structured the contractual arrangement as a land transaction exempt from the Public Contracts Regulations 2015.

Total Quantity or Scope

PHUT intends to enter into an option agreement and ground lease with Noviniti in respect of a new multi-storey car park development at the Hospital. PHUT has structured the contractual arrangement as a land transaction exempt from the Public Contracts Regulations 2015

Award Detail

CPV Codes

• 45000000 - Construction work
• 45213312 - Car park building construction work
• 98351000 - Car park management services

Legal Justification

The subject of this notice is an agreement to be entered into between PHUT and Noviniti for the grant of an option entitling Noviniti to call for the grant of a 35 years Ground Lease of part of PHUT's freehold land at the Hospital. The area which will be subject to the option is defined within the option agreement and the option period will run for an initial period of 39 weeks (subject to extension). PHUT has had valuation advice and will grant the Ground Lease at a premium which reflects market value If Noviniti exercises the option and calls for the grant of the Ground Lease that Ground Lease will be for a period of up to 35 years. The Ground Lease is subject to break clauses in favour of PHUT after 2 years and again at an agreed date reflecting the 30th anniversary of practical completion of the Potential Development (as defined below) by Noviniti. The Ground Lease anticipates that Noviniti may choose (but with no obligation to do so) to undertake a Permitted Alteration (in accordance with a Licence for Alterations that may be entered into) of a multi-storey car park building at the Hospital (the "Potential Development"). The detail of the Potential Development will have been agreed between PHUT and Noviniti prior to the grant of the option agreement. PHUT has a right to terminate the Ground Lease if Noviniti has not commenced the works comprising the Potential Development by the date 52 weeks after the date of the Ground Lease. PHUT will have obligations to use reasonable endeavours to assist Noviniti in dealing with matters relating to the planning permission for the Potential Development including entering into third party agreements necessary to facilitate the Potential Development. The exercise of the option by Noviniti to call for the Ground Lease does not trigger any obligation on Noviniti to undertake or on PHUT to procure the Potential Development. If Noviniti decides to undertake the Potential Development, (and if PHUT subsequently so decides) Noviniti and PHUT may enter into an agreement for lease providing for the grant by Noviniti of an underlease of the completed development to a third party operator and a reversionary lease to PHUT. If that agreement is reached PHUT anticipates that PHUT, Noviniti and the third party operator will enter into further documents including an agreement for lease, a licence for alterations and underleases of the completed development.

Other Information

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