005601 - Annuity Lease Back Model

Tender description

The Council wishes to invite organisations to finance, design and build and fit out new homes on specific sites and to certain standards and specification which the Council will lease back for a set period of time under an Annuity Lease Back Model ‘ALBM’, At the end of this period of time all property and assets will revert back to Council ownership. By leasing the properties back to the Council the partner will secure a long term fixed return for the investment. There are 148 new homes (including Assisted Living apartments, Tyneside flats and bungalows) on 5 sites across the city envisaged for inclusion. This will deliver older persons housing, and an assisted living scheme. The Scheme involves delivering the following developments: 53 number assisted Living Units (consisting of a mix of apartments, Tyneside flats and bungalows) at the Parkway Site: 20 number Dementia Care Apartment units at Clumber Street Site 22 number Units (consisting of a mix of bungalows and Tyneside flats) at the former Westerhope Day Centre Site: 19 number units (consisting of a mix of bungalows and Tyneside flats) at the Avision Street and Douglas terrace Site: 34 units (consisting of a mix of bungalows and Tyneside flats) at Coniston court Site. 3 / 5 The lease period is for 65 years, however there is a break clause in the overriding lease at 40 years. Therefore the investment return period should be profiled over a 40 year period (the investor should base their income from the lease over 40 years). The scheme may involve some capital contribution being made available by the council but the appointed provider is expected to be able to fully finance the delivery of the scheme. Further details of the requirements and the scope of the scheme is provided in the Memorandum of Information (MOI) and supporting information which will be available as part of the procurement documents at https://procontract.due-north.com/ Bidders are to note that the ITPD is at this stage for information only this being a Competitive Dialogue process and so it should not be submitted. Keywords: Development, Investment, Rental, Housing, Construction, Building