Real estate services

Tender description

The University of Trinity Saint David (the University) proposes to develop 23 acres of land at SA1 Swansea Waterfront forming part of the dockside regeneration area (SA1 Estate). The University is using and/or reserving 8 acres for a first phase academic development, which does not form part of this procurement. It proposes to develop the remaining land for residential and commercial use. The University's immediate plans are for development of a ‘Box Village’ comprising incubation, co-working and early stage business space alongside retail, leisure and event space, adjacent to the academic development. Thereafter it envisages the development of an innovation precinct, alongside the academic development, to accommodate businesses wanting to co-locate alongside the University campus, car parking and student residential developments. The University wishes to find a partner or partners with whom to establish a joint venture to assist in unlocking the potential for developing the SA1 Estate. The University is seeking delivery expertise, and increased capacity and pace for its proposed development to ensure optimal performance and returns. The University will also be seeking to achieve its wider objectives concerning income generation, economic growth, job creation and regeneration. The University wishes to find a Joint Venture Partner or Partners with whom to establish a Joint Venture to assist in unlocking the potential for developing the SA1 Estate for the benefit of SA1, Swansea and West Wales, with large development returns being possible. The University's team has undertaken work over the last 2 years and has now reached a stage where it considers that additional expertise and resource is required to realise its aspirations and achieve best value. The University's core aspirations and expectations for the project and any Joint Venture are: to establish with its Joint Venture Partner a separate legal entity (special purpose vehicle) to develop the SA1 Estate with the Joint Venture Partner injecting seed funding, assisting in creating cost efficiencies in any building work and ultimately sharing profits with the University on completed projects; to generate short to medium term returns to enable the University to discharge its payment obligations to Welsh Government and finance the Box Village (whether or not the Box Village is undertaken through separate partners); to generate additional returns for the University through development and select an effective Joint Venture Partner to bring added social value in the medium to long term, which help towards the creation of the Innovation Precinct (whether or not delivered by the Joint Venture Partner or separately); and to generally enhance the University's core offering including business co-location, education and training, product development and further commercial opportunities, subject to feasibility. Suggested Corporate Model. The University believes that the most appropriate corporate structure is the creation of a special purpose vehicle in which both the University and Joint Venture Partner(s) take equity stakes. This SPV will have the following features: land will be transferred or licensed to the SPV for the University as its contribution to the SPV — this land has significant value and opportunity and is described in more detail in the Briefing Paper and accompanying documents and the University also has additional land and assets that it may wish to incorporate into the project at a later stage at its discretion; the Joint Venture Partner will provide match funding by way of seed funding and equity and bring in resources and skills to drive the project forward, so as to complement the input of the University's current team; for its core SA1 Estate development proposals (the Box Village and Innovation Precinct) the University anticipates being able to provide additional support in the form of funding awarded as part of the City Deals Programme, if its application is approved — these phases may be procured under separate lots and be subject to additional governance controls to satisfy funding criteria; returns in the Joint Venture will be shared in proportions to be determined through the procurement process so that the University can be assured of maximising its returns in light of its contributions; and the Joint Venture Partner will have day to day responsibility for driving forward development proposals, value engineering and optimising plot values, subject to certain key decisions being referred to a supervisory board of the Joint Venture consisting of representatives of the University and the Joint Venture Partner — this will ensure that matters of key importance to the University, or relevant to its constitution and/or Charitable status (including the protection of its investment), will require University input.