Real estate services

Tender description

Stockport Metropolitan Borough Council (SMBC), in conjunction with the Greater Manchester Combined Authority (GMCA) as co-promoters (with Transport for Greater Manchester (TfGM) leading from a delivery perspective) are seeking to identify a prospective development partner relating to the residential development element of the Stockport Interchange Mixed Use scheme. The Stockport Interchange Mixed Use scheme comprises redevelopment of the existing bus station within Stockport town centre, to create a mixed-use development which drives both financial and regeneration benefits from the site. The development partner is required to invest equity investment and secure development funding, assist with design development, and implement residential property and asset management (including lettings and tenants) relating to the residential development element. Following identification of a development partner they will subsequently enter into a Special Purpose Vehicle (SPV) with SMBC and GMCA. — Stockport Metropolitan Borough Council (SMBC) and the Greater Manchester Combined Authority (GMCA) as co-promoters are seeking via this procurement to appoint a development partner for a residential development (adopting a private rented sector commercial model and comprising circa196 units in a mixture of 2 bed and 1 bed units finished to a high standard) with provision for car parking spaces and commercial/amenity space beneath (the ‘Residential development’). The three main requirements are the following, with further detail in the descriptive document made available electronically: 1) Invest equity in to a Special Purpose Vehicle (SPV) and secure development funding sufficient to deliver the Residential Development; 2) Adopt a collaborative working partnership with SMBC, GMCA and TfGM to progress the design development and delivery of the Residential Development. To include identification and delivery of value engineering opportunities and maximising gross development value and financial returns to stakeholders; and 3) Implement residential property and asset management via the SPV over a minimum term, including management of lettings and tenants: — the Residential Development is part of a Mixed Use scheme that also includes the development of a new state of the art transport Interchange, a raised podium creating high quality ‘green’ public space, enhanced connectivity to the town’s rail station and River Mersey frontage, together with a range of additional ancillary infrastructure (the ‘Scheme’), — SMBC and GMCA will invest ‘patient equity’ into the SPV collectively up to 10 000 000 GBP in order to ensure the viability of the residential development. The SPV will retain and operate the residential development for a term that is sufficient to allow for the capital appreciation of the asset and repayment with return of the patient equity invested by SMBC and GMCA over and above development partner returns prior to any disposal, — Transport for Greater Manchester (TfGM) are leading the delivery of the whole mixed use scheme and are responsible for funding the redevelopment of the Interchange and the other infrastructure enhancements, including the ‘green’ public space and improved connectivity proposals, SMBC and GMCA are seeking to secure the funding and ongoing management and operation of the residential development element of the scheme, through appointment of a development partner, — the strategy for the delivery of the the mixed use scheme comprises comprises the appointment by TfGM of a single works contractor (the ‘DB Contractor’) to undertake the design and build of the entire mixed use scheme. The procurement process for the DB Contractor will be undertaken separately but in parallel to this procurement process (which is being undertaken to secure a development partner for the residential development). For the avoidance of doubt, the design and build contractor element is not part of this opportunity but the development partner will be expected to input into the design process with the separately appointed DB Contractor as outlined below. This strategy has been developed to address the key challenges faced and earliest buildability input and a single point of accountability for interfaces between multiple scheme elements were considered to be key, — the DB Contractor will be appointed under a 2 stage procurement process. The first stage being the further development of the design (‘the preconstruction stage’). For the second stage, detailed ‘design and construction stage’, it has been recognised that the prospective development debt funder (the ‘Debt Funder’) for the residential development may have its own requirements which will need to be reflected in the contract delivery structure. Therefore, it is intended that the DB Contractor will be appointed by TfGM under 2 separate contracts; for the interchange/park; and the residential development.