Northampton General Hospital Main Entrance and Retail Facility

Tender description

The subject of this notice is an option agreement to be granted by Northampton General Hospital (NGH) to Noviniti for an initial period of 39 weeks entitling Noviniti to call for the grant of a 39 yr ground lease by NGH of part of the Trust's freehold land The area which will be subject to the option is defined within the option agreement NGH has had valuation advice & will grant the option & the subsequent ground lease at a premium which reflects market value If Noviniti exercises the option & calls for the grant of the ground lease that ground lease will be for a period of up to 39 years The ground lease in either case is subject to break clauses in favour of NGH after 2 yrs & again at an agreed period after practical completion of any development by Noviniti The ground lease anticipates that Noviniti may choose (but with no obligation to do so) to undertake a permitted alteration (in accordance with a Licence for Alterations that may be entered into) of a building extension at the hospital for retail & ancillary uses of circa 2200 sq. metres (the Potential Development) The permitted alteration will be in the form of the draft provided by the landlord & agreed between the landlord & tenant The landlord has a right to terminate the lease if the tenant has not commenced works at the premises to undertake the permitted alterations on the date 52 weeks after the lease is entered into Where the option is exercised NGH will have obligations to use its reasonable endeavours to assist Noviniti in dealing with matters relating to the planning permission including any 3rd party consents required to enable Noviniti to implement the Potential Development & entering into agreements with 3rd where necessary to facilitate the Potential Development Exercise of the option by Noviniti to call for the ground lease does not trigger any obligation on Noviniti to undertake or on NGH to procure the Potential Development If Noviniti decides to undertake the Potential Development & if NGH subsequently so decides Noviniti & NGH may enter into an agreement for lease & sub-lease of those areas of the completed development comprising the medical records facility with the remainder of the Potential Development on adjoining hospital land being for the benefit of NGH If that agreement is reached then NGH would expect to enter into further documents being agreements for lease & sub-leases with commercial tenants to occupy the retail space