Real estate services

Tender description

HS2 Ltd, on behalf of the Contracting Authorities (SoS and NR) is procuring an MDP to lead the regeneration of the Euston Estate, a 22 hectare site consisting of SoS and NR owned land above and around Euston Station. The MDP will (as set out in Procurement Documents): — develop and promote a Masterplan vision for the Euston Estate, in partnership with stakeholders; — ensure that development is integrated and value is optimised without compromise to HS2/NR station operation/delivery; — promote and secure planning permissions; — have the option to fund and deliver the construction of buildings and associated amenities; and — establish the management arrangements for the completed Euston Estate (excluding railway property). Applicants should note that the NR station redevelopment is in early planning phases and is not yet funded. For clarity, this opportunity does not involve the design or construction of any railway infrastructure or stations. Please see II.2.4 and VI.3 for more information. The Secretary of State for Transport (SoS) is delivering a new terminus station for High Speed 2 at Euston Station. Network Rail (NR) are owners of the adjacent ‘Conventional Station’ and surrounding lands. SoS and NR will bring together their land holdings at Euston to create an estate capable of accommodating significant commercial and residential development and are preparing a Masterplan to quantify the development potential of the Euston Estate. SoS and NR (together, the Contracting Authorities) will, by the date of Contract Award, have entered into a Collaboration Agreement to effectively pool their respective ownerships in the public interest and also to streamline decision making between the Contracting Authorities. The Overarching Objectives of the Contracting Authorities are to: create significant economic and social benefits for the local, regional and national economy; and maximise financial returns from a development of the Euston Estate. The Contracting Authorities are jointly procuring a MDP to support the delivery of the Overarching Objectives. The Contracting Authorities will enter into a Contract with the MDP (the MDP Development Agreement) to govern the terms of the development of the Euston Estate. The Euston Development Board will ensure a streamlined process for interfacing between the Contracting Authorities (as a single decision making entity) and the MDP. The parties shall at all times act collaboratively in the pursuit of the Overarching Objectives. The MDP shall have the right to acquire a leasehold interest in land (between 150 and 300 years over the Phase, with a ground rent payable to the Contracting Authorities) and undertake development activity on it. The length of lease will be determined by the use to which the land is put and its location above operational property or not. This will be subject to the satisfaction of specified draw down pre-conditions including the completion by the Contracting Authorities of specified OSD Enabling Works. The Enabling Works together with other land already held by the Contracting Authorities will comprise the Euston Estate. The OSD Enabling Works will be paid for by Government and delivered by HS2 Ltd as part of the Station design and construction contracts. Delivery of the OSD Enabling Works are not part of this procurement opportunity. The terms of the commercial deal with the MDP will be set out in the Procurement Documents and will be developed further during competitive dialogue to secure the delivery of the Overarching Objectives and other key deliverables. The MDP Development Agreement together with an agreed form of the Business Plan will embody these deliverables and will together be the key documents for judging the performance of the MDP. They will contain performance criteria against which the MDP will be measured across the life of the scheme. The commercial deal with the MDP is proposed to be as follows: Stage 1 — Masterplanning and Stations Interface, Stage 2 — Outline Planning Application, Stage 3 — Plot Progress, Stage 4 — Estate Management. The details of the above stages, and the scope of the opportunity within each stage is detailed in the Procurement Documents. It is envisaged that the Contract will extend for a period of 25 years unless terminated earlier in specified circumstances. It may be extended by agreement between the parties (up to a total duration of 40 years). Interested parties should note that whilst a vision and development is sought for the whole Euston Estate, detailed work has so far been confined to areas above and around the HS2 Station. Further work will be required to define the scope of the future development opportunity on the NR owned land above and around the existing Conventional Station.