Construction work for multi-dwelling buildings and individual houses

Tender description

Newcastle City Council (“the Authority”) 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 Authority 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 Authority ownership. By leasing the properties back to the Authority the partner will secure a long term fixed return for the investment. There are 197 units on 8 sites across the City proposed for inclusion. These will be a mix of bungalows and Tyneside flats for older persons and people with physical care and support needs, residential apartments for people with learning disabilities and/or Autism, and a sheltered apartment scheme for older persons. The Authority 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 Authority 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 Authority ownership. By leasing the properties back to the Authority the partner will secure a long term fixed return for the investment. There are 197 units on 8 sites across the City proposed for inclusion. These will be a mix of bungalows and Tyneside flats for older persons and people with physical care and support needs, residential apartments for people with learning disabilities and/or Autism, and a sheltered apartment scheme for older persons. 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 Authority 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/