Property management services of real estate on a fee or contract basis

Tender description

Lancashire County Council and the London Pensions Authority (the “Authorities”) have pooled their assets under the management of the Local Pensions Partnership (“LPP”) and are retendering the property management services for four property investment portfolios as further described below. Knight Frank Investments Management LLP ("KFIM") is managing this procurement process on behalf of the authorities, and will follow the competitive dialogue process in accordance with the public contracts regulations 2015. This opportunity is divided into 2 lots as further described below. Lot 1 consists of the following opportunities: — Lancashire County Pension Fund National Portfolio ("LCPF National"). Approximate asset value: 600 000 000 GBP. Approximate allocation to be invested: 100 000 000 GBP. Expected timeframe: 2 years, — London Pensions Fund Authority Core Portfolio ("LPFA"). Approximate asset value: 150 000 000 GBP. Approximate allocation to be invested: 150 000 000 GBP. Expected timeframe: 2 years. An asset pooling vehicle is currently being established to acquire future property investments for the 2 authorities jointly, the timing for creation of this vehicle is yet to be confirmed. The allocations shown above will be invested in the LCPF National or LPFA portfolios or in the new pooling vehicle depending on when the vehicle is incorporated. When the vehicle is incorporated, the property manager appointed for Lot 1 will be required to enter into a contract with the pooling vehicle on the same terms as its contracts in respect of the LCPF National and LPFA portfolios. The LCPF National and LPFA portfolios, and the portfolio to be acquired in the pooling vehicle will have the same investment strategy, namely to provide a total return of CPI plus 4-6 % per annum by investment in and active management of a portfolio of commercial property assets balanced across the retail, office, industrial and “alternative” sectors and across the geographic regions of the UK. Details of the existing properties owned in all Lot 1 portfolios are provided in the tenderbox facility via the portal. The services to be provided under the contracts for the Lot 1 portfolios will include the complete property management service from rent collection to service charge management and financial reporting. Candidates will be expected to have knowledge of and manage compliance processes and sustainability matters. Full details of the services to be provided are contained in the Lot 1 specification which is available in the tenderbox. The estimated contract value is based on the total estimated income over the full contract period. The authorities may either (i) make separate appointments in respect of Lot 1 and Lot 2; or (ii) make a single appointment encompassing both Lots 1 and 2 to the highest scoring Bidder of Lot 1 in accordance with the criteria set out in the procurement documents. It is anticipated that the authorities will require their costs incurred in connection with the procurement, up to a cap of 50 000 GBP to be offset against the 1st year’s fees payable to the appointed property manager. Bidders will get an opportunity to comment on this during the dialogue sessions. Lot 2 consists of the following opportunity: — Lancashire County Pension Fund County Portfolio (“LCPF County”). Approximate asset value: 60 000 000 GBP. Approximate allocation to be invested: 90 000 000 GBP. Expected timeframe: 3 years. The investment strategy of the LCPF County portfolio requires a total return of CPI plus 4-6 % per annum by investment in and active management of a portfolio of commercial property assets balanced across the retail, office, industrial and “alternative” sectors. It is, however, restricted to investment within the County of Lancashire (NB: This excludes the Metropolitan Counties of Greater Manchester and Merseyside). Details of the existing properties owned in the Lot 2 portfolio are provided in the tenderbox facility via the portal. The services to be provided under the Lot 2 contract will include the complete property management service from rent collection to service charge management and financial reporting. Candidates will be expected to have knowledge of and manage compliance processes and sustainability matters. Full details of the services to be provided are contained in the specification documents which are available in the tenderbox. The estimated contract value is made up of the total estimated income over the full contract period. Note that bidders who wish to be considered for Lot 1 must also bid for Lot 2. However, Bidders which are interested in Lot 2 only, are not required to also submit a bid for Lot 1. As part of this procurement exercise, the Authorities wish to explore whether economies of scale could be achieved by awarding both Lots to the Lot 1 provider. Bidders should therefore note that the authorities may either (i) make separate appointments in respect of Lot 1 and Lot 2; or (ii) make a single appointment encompassing both Lots 1 and 2 to the highest scoring Bidder of Lot 1 in accordance with the criteria set out in the procurement documents. In expressing interest in Lot 2 only, those Bidders acknowledge that ultimately, the Bidder which achieves the highest score following completion of the evaluation exercise for Lot 2 may not be awarded the Lot 2 opportunity, as the authorities may decide to award the Lot 2 opportunity to the highest scoring bidder for Lot 1 if certain criteria are met. Those criteria are further described within the procurement documents available via the tenderbox.