Renting or leasing services of own property

Tender description

The Council will lease Croxley Business Park, Hertfordshire (the Property) — 40 year term total rent 368 000 000 GBP (indexed) from Sackville UKPEC3 Croxley Nominee 1 Ltd and Sackville UKPEC3 Croxley Nominee 2 Ltd as Trustees for Sackville UKPEC3 Croxley (GP) Ltd the general partner of Threadneedle UKPEC3 Croxley LP (the Landlord). The Council has the option to acquire (for a nominal sum) from the Landlord the freehold of the property. The property is an office park occupied by business tenants. The Landlord will construct a new office building (detailed in ii.2.4). These works are funded by the Landlord (who has designed and specified them to its contractors). Incidental to the lease to ensure continuation of services to the business tenants the existing asset and property services managers (detailed in ii.2.4), shall continue to provide the services they have historically delivered. It is not the Council's intention that these management functions will be enduring arrangements. The Council will take a lease for the term of 40 years of Croxley Business Park (the Property) from the Landlord — total rent 368 000 000 GBP (indexed). The property is currently subject to various interests including occupational business tenancies. The Council will be the direct landlord of those tenants. The Landlord intends to construct a new office building which is to replace an office building that is to be demolished. The Landlord has designed and appointed contractors to develop that building (at a cost of approximately 23 000 000 GBP). The Council is not specifying these works and it will take a lease of the property whether or not the works are undertaken. To facilitate the Landlord's construction the Council will enter into a development management agreement with the Landlord under which the Council will give legal permission for the Landlord to undertake those works, will obtain warranties and similar protection in respect of the constructed building and in the event that the Landlord abandons those works certain rights which will enable the Council to procure another party to complete them. As part of the arrangement, the Landlord's existing provider Threadneedle Portfolio Services Ltd and Workman LLP together with 3 letting agents, shall also provide general maintenance and management services under the terms of asset management agreements between those parties and the Council. The Council has opted to retain the existing providers in order to ensure business continuity to the tenants of the property and a smooth transfer to it of an operating of the property. The Council's intention is that these management services shall not be enduring arrangements.