Renting or leasing services of own property

Tender description

The Council will enter an agreement for lease with Reef Estates (Wimbledon) Ltd (Reef) and Possfund Custodian Trustee Ltd for land at 27-39A Hartfield Road, Wimbledon, London, SW19 3SG (the Property) and the Council will subsequently lease the Property from Possfund Custodian Trustee Ltd (the Landlord) for a 50 year term for a total rent of GBP 98.55 million (indexed). At the expiry of the lease the Council has the option to acquire the freehold of the Property from the landlord for a nominal sum. The landlord and reef will construct a new building containing a hotel and restaurant space. These works are funded by the landlord and reef to a specification agreed by them and set out in an agreement for lease made in 2017 between Reef and Travelodge Hotels LTd. The Council is only legally obliged to lease the Property on the completion of the new building. The Council will enter an agreement for lease with Reef Estates (Wimbledon) LTd (Reef) and Possfund Custodian Trustee Ltd for land at 27-39A Hartfield Road, Wimbledon, London, SW19 3SG (the Property) and the Council will subsequently lease the Property from Possfund Custodian Trustee Ltd (the Landlord) for a 50 year term for a total rent of GBP 98.55 million (indexed). At the expiry of the lease the Council has the option to acquire the freehold of the Property from the landlord for a nominal sum. The landlord will appoint reef to develop a new building which shall contain space for a hotel together with space for restaurants and/or cafes and/or bars. These works will be funded by the landlord and developed by reef to a specification agreed by the landlord and reef which is substantially set out in an agreement for lease of the Property made in 2017 between Reef and Travelodge Hotels Ltd. The Council will benefit (as the Landlord's tenant) from certain warranties and protections in relation to those responsible for the design and construction of the new building. The Council is only legally obliged to lease the Property from the landlord on the completion of the new building. Under the lease the Council is responsible for the management and maintenance of the Property. The Council will sub-let most of the building to Travelodge Hotels Ltd for use as a hotel with a smaller ground floor area to be let to restaurant/café operators.