Construction work

Tender description

This contract award notice is made further to the notice published on 23 October 2020 with Publication OJS Number: 2020/S 207-506263 and relates to arrangements which are now covered by a Forward Funding Agreement (FFA) between the Council (WBC) and English Cities Fund (acting by its General Partner, ECf (General Partner) Ltd) (Developer) in respect of a Site currently owned by the City Council of Salford (Landowner) known as Plot B7 New Bailey Square, New Bailey, Salford (Site). This notice has been issued confirming that such arrangements fall outside the remit of Directive 2014/24/EC for the reasons set out below. WBC and Developer have now entered into the FFA in respect of the Site. Once developed the Site will comprise new Grade A office accommodation of approximately 217 142 sq ft NIA (the Development) which shall be leased from WBC to a commercial tenant for a 20 year period from completion. The Site forms part of a wider development area known as ‘New Bailey’ which has been developed on an exclusive basis by the Developer pursuant to an underlying development agreement dated 15 December 2006 between the Developer and the Landowner (the DA), which is due to expire in December 2026. Under the terms of the DA the developer has an exclusive right to put forward a ‘Development Proposal’ in respect of the land forming the wider development area of New Bailey and if approved by the Landowner, develop New Bailey on a phased basis during the term of the DA (unless terminated earlier). The developer has subsequently brought forward the Site for development, the Landowner has approved the proposals, and WBC have now entered into the FFA – which commits WBC to funding the development of the Site; and an Agreement for Headlease (AfL) – between the Landowner and WBC for the grant of a 250 year headlease, both were entered on 12 November 2020. The FFA and the AfL are conditional upon satisfaction of certain conditions (relating to planning consent and detailed design) contained in a corresponding Agreement for Underlease (AfUL) between the Developer and a commercial tenant (Tenant) who will enter into an occupational lease upon completion of the Development. It is under the AfUL that any detailed design is developed by the developer and approved by the tenant. Those works have not been specified by WBC nor has WBC had nor will it have under the terms of the FFA any decisive influence over the design of those works. The AfUL itself is conditional upon planning permission being granted and it is anticipated that all arrangements will be in place, and that completion of the Head Lease between WBC and the Landowner will take place in late November/early December. The FFA will therefore become unconditional and development of the Site will commence shortly thereafter.