Delivery Partner for Growing Brixton’s Rec Quarter – 49 Brixton Station Road and 6 Canterbury Crescent

Concepts

• construction work
• canterbury crescent
• brixton station road
• road
• station
• growing
• quarter
• canterbury
• brixton
• rec

Location

Description

The Council intends to enter into a deed of variation with London Square Developments Limited (the Developer) and London Square Limited (the Guarantor) in relation to an existing development agreement between the parties (the Underlying Contract) which was entered into on 28 September 2022 to ensure the viability and deliverability of the scheme under the Underlying Contract. The key variations comprise a reduction in the minimum level of commercial workspace required in alignment with Local Plan policy for mixed-use regeneration schemes, a reduction in minimum affordable housing levels from 50% to 40% and a reduction in the Council's land receipt in line with revised financial modelling and which represents best consideration in today's market.

Total Quantity or Scope

The Council intends to enter into a deed of variation with the Developer and the Guarantor in relation to an existing development agreement between the parties (the Underlying Contract) to address changing circumstances since the Underlying Contract was entered into. The location, duration and nature of the works will remain broadly the same, still delivering new build housing, workspace, street market facilities and public realm improvements subject to a reduction in minimum affordable housing levels to 40% and a reduction in the minimum required level of workspace reprovision in alignment with Local Plan policy for mixed-use regeneration schemes. The Council has received commercial advice to review the updated financial appraisals and ensure that the costs and revenues are commercially reasonable, reflective of the wider market and represent best consideration for the Council

Award Detail

CPV Codes

• 45000000 - Construction work
• 70000000 - Real estate services
• 70100000 - Real estate services with own property

Legal Justification

This VEAT gives notice that the Council is entering into a deed of variation (the "Deed") to amend the Underlying Contract. A procurement procedure is not necessary on the basis that the award of the Contract is permitted pursuant to regulation 72(1)(c) of the Public Contracts Regulations 2015. The need for modification has been brought about by significant domestic and international economic turbulence, including substantial build cost inflation, rises in UK interest rates and ongoing shifts in how businesses use and occupy workspace post-Covid together with the implementation of legislative and regulatory changes with respect to Building Safety . The overall scheme remains broadly the same in nature delivering newbuild housing, workspace, street market facilities and public realm improvements. The Council has obtained external commercial advice which has reviewed the revised financial appraisal to confirm that it is within reasonable tolerances based on industry benchmarking. The Developer's percentage return has reduced. Moreover, the proposed variation is also not substantial within the meaning of regulation 72(1)(e) of the Public Contracts Regulations 2015.

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. ** For information and transparency, the Council is publishing this VEAT notice demonstrating its intention to enter into a deed of variation with the Developer and the Guarantor in relation to an existing development agreement in accordance with Regulation 72 of the Public Contracts Regulations 2015. This contract (the deed of variation) has not yet been entered into and, for information only, a contract award notice will be published following conclusion of the contract (deed of variation). In accordance with Regulation 92 to 104 of the Public Contract Regulations 2015 (as amended), the Authority will incorporate a minimum 10 calendar day standstill period starting from the date when this notice is published. A modification notice was also published in relation to this proposed Deed of Variation on 19/02/2025 (2025/S 000-006029).