Construction work

Tender description

The development of a Leather Centre, as further described in section II.2.4 below. The University are undertaking a land deal alongside a pre-let arrangement. The University is the freehold owner of the plot, which is currently designated for commercial B1 use. The University will dispose of a long leasehold interest in the plot to the developer, Stoford Properties Ltd. Should Stoford Properties deliver a Leather Centre on the plot which meets certain requirements, the University will agree to take a 25 year lease of the building. The University will reserve the right to claw the plot back from Stoford Properties in the event that certain development timeframes are not met. Stoford Properties will be responsible for the design, planning and contract tender for the new development and will seek a forward funding arrangement from the investment market. Stoford Properties will take a commercial return in acting as developer. The anticipated build cost to the contractor is in the region of 7 000 000 GBP excluding VAT, subject to a competitive tender. The completed building with the benefit of a 25 year lease to the University will be sold as an investment.