Development of a Package Deal for the provision of affordable housing in Pembroke Dock

Concepts

• construction work
• pembrokeshire
• houses
• houses construction
• affordable housing
• housing
• pembroke dock
• affordable and social housing
• the completed housing outputs
• affordable

Location

South West Wales:

Description

Pembrokeshire County Council (the Council) has identified a development opportunity at the former Cleddau Bridge Hotel site at Pembroke Dock (the Site) which it considers suitable to deliver housing on. The Site was up for sale for some time but has been purchased from a third party by Port Talbot Developments SPV1 Ltd (PTDSPV), a company which is 100% owned by Castell Group Limited (CGL) and which has recently obtained planning permission for the site. CGL is 80% owned by Property Brothers Limited and 20% owned by Clive Hill Ltd. Property Brothers Ltd is 100% owned by Dorian Payne. CGL has approached the Council with a proposal for bringing about development of the Site as described in this notice. CGL’s proposal is that, CGL’s delivery arm, Castell Construction Ltd (CCL) which is 80% owned by Dorian Payne and 20% by Clive Hill Ltd will develop the Site for affordable and social housing (circa 35 units) to Welsh Design Quality Requirements (WDQR) standard. Continued in II.2.4

Total Quantity or Scope

CGL requires the Council to (i) agree and complete a contract for the purchase of the Site from PTDSPV; and (ii) immediately following its acquisition of the Site, enter into a JCT Design and Build contract (the ‘Contract’) with CCL for the delivery of housing on the Site subject to compliance with planning permission dated 13th December 2024, ref 24/0724/PA. The arrangement will result in the Council placing a legally enforceable obligation on CCL to commence and deliver housing on the Site in accordance with agreed specification requirements as set out in the Contract, which the Council will pay CCL for. The Council will take ownership of the completed housing outputs to be delivered on the Site Additional information: The Council, relying on Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015 (PCR) intends to award a contract to CCL for the delivery of housing on the Site (as described in this notice). Further information on this is set out in Annex D1.

Award Detail

CPV Codes

• 45211100 - Construction work for houses
• 45100000 - Site preparation work
• 45112700 - Landscaping work
• 45210000 - Building construction work
• 45211000 - Construction work for multi-dwelling buildings and individual houses
• 45211300 - Houses construction work
• 45211341 - Flats construction work
• 45213316 - Installation works of walkways
• 45233100 - Construction work for highways, roads
• 45233161 - Footpath construction work
• 71000000 - Architectural, construction, engineering and inspection services
• 71220000 - Architectural design services
• 71240000 - Architectural, engineering and planning services
• 71251000 - Architectural and building-surveying services
• 71400000 - Urban planning and landscape architectural services
• 71500000 - Construction-related services
• 71540000 - Construction management services
• 71530000 - Construction consultancy services
• 71247000 - Supervision of building work

Legal Justification

The Council has a corporate priority that aims to increase the supply of affordable housing and social homes and is seeking to expand its housing stock to satisfy local housing need. The Council considers the need for social and affordable housing in the development area to be significant and that the proposed transactions with PTDSPV and CCL will help the Council to meet housing demand. Furthermore, delivering the housing on the Site as described in this notice will assist the Council to meet its own homes targets as well as the targets set by Welsh Government. In recent years the Council, when conducting procurement exercises to appoint contractors to deliver residential developments on Council-owned land, has experienced a lack of interest from the market, with there being no bids received or any bids not being viable. Attracting a new contractor, such as CGL/CCL, to Pembrokeshire, which specialises in social housing builds with a proven track record of delivering such homes across Wales to WDQR standards is highly desirable, given that the Council has struggled to attract housing contractors to the local market previously. The Council considers that there is limited availability of land/suitable sites in the Local Development Plan within Pembroke / Pembroke Dock which are designated to allow for residential development of this scale and without significant site challenges that impact development viability. For this reason, the proposed development is only capable of being delivered on the Site. The proposal by CCL is for a development programme of 18 months]). CCL estimates commencing the development in April 2025, which would mean completion in early 2027. The speed of delivery is particularly attractive to the Council because of the extreme housing need currently being experienced across the county. The Council currently has a significant spend on long term bed and breakfast accommodation approx. 3mGBP p.a. to house homeless residents. This level of spend is unsustainable and therefore there is a pressing need to accelerate the delivery of affordable homes. Continued in VI.4.3)

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. ** The estimated value in II.2.7 and V.2.4 represents the estimated value of the works which will be the subject of the JCT Design and Build contract with CCL. The date in V.2.1) refers to the date on which the decision to enter into the build contract was made by the Director of Social Services and Housing following delegation by Cabinet on the 4th April 2024. A decision on whether or not to purchase the Site was delegated to the Assistant Chief Exec but is subject to a valuation exercise which is not likely to be completed until around 6 March 2025. As such, the final decision to proceed with the arrangements (as described in this notice) is not expected to be made until on/after 6 March 2025. (WA Ref:148311)