Basildon Hospital main entrance and retail facility

A Contract Award Notice
by MID AND SOUTH ESSEX NHS FOUNDATION TRUST

Source: Find a Tender
Type: Contract (Works)
Duration: 15 year
Value: £11M

Sector: CONSTRUCTION
Published: 10 Oct 2021
Delivery: To 23 Jul 2036 (est.)
Deadline: n/a

Concepts

Location

Basildon Hospital, Nethermane Mayne, Basildon. SS16 5NL

Geochart for 1 buyers and 1 suppliers

1 buyer

Mid & South Essex NHS Trust Nethermayne

1 supplier

Noviniti Dev Co 8 Oundle

Description

Mid and South Essex NHS Foundation Trust ("MSE") has entered into a series of leasing arrangements with Noviniti Dev Co 8 Ltd ("Noviniti") and WHSmith ("WHS") in respect of a retail development ("the Development") at Basildon Hospital, Essex ("the Hospital") with WHS as Noviniti's initial tenant and retail operator. MSE has structured the contractual arrangement as a land transaction exempt from the Public Contracts Regulations 2015 (PCR) and the Concession Contracts Regulations 2016 (CCR). Noviniti has an option to draw down a 35-year ground lease ("GL") of the site in exercise of an option agreement ("OA") with MSE. The GL has break clauses in favour of MSE after 2 years (so MSE can recover the site if the Development is not commenced) and 30 years from practical completion of the Development

Total Quantity or Scope

MSE has entered into a tripartite Agreement for Underlease with Noviniti and WHS. In this agreement WHS commits to accepting the grant of a 15-year underlease (with rent obligations to Noviniti) on practical completion of the retail facilities. MSE (as head landlord) will have insurance obligations owed to WHS and a repairing covenant for the retail facilities. MSE may step-in to take the underlease if WHS fails to enter the underlease at practical completion. MSE may enter an Overriding Lease (to become WHS's landlord) if WHS becomes insolvent or defaults on its Underlease, in order to maintain the rental payments to Noviniti. MSE may enter a 15-year Reversionary Lease (with rent obligations to Noviniti) to take effect from the expiry of WHS's underlease. MSE may instead direct these leases be granted to an alternate operator if MSE guarantees rent. There will be some office space and common parts delivered as part of the scheme. Additional information: Please see Voluntary Transparency Notice of 22/03/2021 for details of option agreement and ground lease - https://www.find-tender.service.gov.uk/Notice/005723-2021

Award Detail

1	Noviniti Dev Co 8 (Oundle) Basildon Hospital main entrance and retail facility Reference: 025291-2021-1 Value: £10,650,000

Award Criteria

the criteria stated in the procurement documents

CPV Codes

45000000 - Construction work
45214710 - Entrance hall construction work
45215100 - Construction work for buildings relating to health
45215140 - Hospital facilities construction work
55900000 - Retail trade services