Strategic development partner for the regeneration of the Hayes Town Centre and Avondale Drive Estates and a pipeline of strategic projects

Tender description

The Authority is seeking to appoint a partner to form a long term development and regeneration vehicle to secure investment and expertise to deliver the Authority's redevelopment of the Hayes Town Centre and Avondale Drive estates. The redevelopment projects are expected to deliver in the region of 750 mixed tenure new homes. The scheme will involve opportunities for development sales. The redevelopment at the Hayes Town Centre and Avondale Drive estates is estimated to run for a period of eight (8) to ten (10) years to reflect the envisaged construction and sales programmes. In addition The Authority will also expect the delivery partner to sign up to a strategic partnering agreement to deliver the future pipeline projects for an initial term of ten(10) years, extendable for a period of five (5) years. Lot 1: The Authority is seeking a developer partner to jointly deliver the regeneration of the Hayes Town Centre and Avondale Drive Estates. Positive outcomes to the resident ballots which concluded in May 2021 support the full redevelopment of both estates. This will see the existing 404 homes across the two sites being replaced with new neighbourhoods providing circa 750 homes. This includes re-providing existing homes, as well as developing new affordable and private homes. The London Borough of Hillingdon is currently working up hybrid planning applications for the full redevelopment of both estates. The Authority is seeking a Partner who is able to jointly meet the requirements of the project in terms of design, planning, demolition, construction and sales over a long period. The Authority has made a commitment to re-provide the existing affordable homes with no loss of affordable floor space and meeting housing need. The Authority’s aim is to maximise the amount of affordable housing provided in the redevelopment by using affordable housing grant funding secured through the Building Council Homes for Londoners programme. The term for the development agreement in respect of the Hayes Town Centre and Avondale Drive Estates will be determined by the development programme and will be the subject of Dialogue sessions. The Authority will also expect the delivery partner to sign up to a strategic partnering agreement which will set out the principles for the delivery of future pipeline projects. The strategic partnering agreement will be for an initial term of ten(10) years, extendable at the Authority's sole option for a period of five (5) years, giving a possible term of fifteen (15) years. Such pipeline projects will be identified and agreed with the selected delivery partner subject to best value considerations, and are likely to include residential new-build, refurbishment and regeneration projects. The final development partnership structure will be developed through the tender process. The Authority will play an active role in delivering the regeneration including obtaining initial planning permissions and securing vacant possession at initial phases of the projects initially. It also expects to have transparency in the delivery of the project to ensure that the best outcomes are achieved for the local community. With this in mind, the current expectation is that a contractual development partnership will provide the Authority with a delivery structure to achieve those objectives. The Authority is open to exploring option around finance payment structures and as such variant bids will be considered. A draft Development Agreement setting this out in more detail will be made available to shortlisted applicants, along with other documentation. The Authority may require its chosen delivery partner to provide a suitable Parent Company Guarantee and/or a performance bond or bank guarantee, in a form that is acceptable to the Council before it enters into the contracts. Further information and details about the scope of the procurement are set out in the Descriptive Document as part of the procurement documents available at https://www.mytenders.co.uk. Additional information: The estimated values in 2.1.5 and 2.2.6 represent the potential commercial value of the development. However, potential returns will depend on many commercial factors including (but not limited to) the performance of the developer and market conditions. Bidders should seek independent legal and commercial advice in relation to the potential value of the opportunity and the scheme as a whole.