Hild Bede Development & 19th College

Tender description

As part of Durham University's long term accommodation strategy, it is proposing to redevelop the site at Leazes Road in the City of Durham to deliver two colleges comprising circa 1,000 self-catered bed spaces and associated facilities, including a shared hub building. The University is seeking a partner that can deliver and operate this exciting project and to work with the University to realise the full development potential of the site. Lot 1: As part of Durham University's long term accommodation strategy, it is proposing to redevelop the site at Leazes Road in the City of Durham to deliver two colleges comprising circa 1,000 self-catered bed spaces and associated facilities, including a shared hub building. The University is seeking a partner that can deliver and operate this exciting project and to work with the University to realise the full development potential of the site. The development will be a mix of new build and refurbishment and be delivered via a design, build, finance and operate (DBFO) model with a private sector partner (and associated supply chain). The estimated capital cost of the development is expected to be in the range £100m to £130m and it is expected the operational period will be up to 50 years. The project is required to be off-balance sheet for the University with the DBFO partner having responsibility for the design (including obtaining planning consent), delivery, financing, and operations (which will include both hard and soft FM). The project is considered central to the University's wider accommodation strategy and will also involve the transfer of demand risk to the partner with the University retaining nomination rights for the term of the project. Further information of the key requirements of the University will be provide at the market engagement event and in the subsequent procurement documentation. The areas of the site that are to be redeveloped are owned by the University and is the current location of the College of St Hild and St Bede. The site benefits from a south facing aspect fronting on to the River Wear and is a short walk from the city centre and nearby Gilesgate area. The existing college will operate elsewhere until the new facilities are completed and then return alongside a new 19th college to be located on the site. Existing facilities on the site comprise a mix of building ages with the oldest (heritage) buildings occupying the northern part of the site. These are to be refurbished, leaving the balance of the site for the development of a new college alongside the new shared hub facility. The University's preference is for all the new facilities to be completed and ready for occupation for the start of the 2026/27 academic year. The University does not consider itself a contracting authority for the purposes of the Public Contracts Regulations 2015 and so the procurement process will not be advertised and carried out in accordance those regulations. The purpose of this notice is solely to make the widest possible market aware of the opportunity and the next steps in the University's process. The process of appointing a partner will comprise an initial selection stage involving interested parties responding to a Selection Stage Questionnaire. Successful bidders will then be short-listed and invited to participate in a focused period of engagement with the University to develop their proposals prior to submitting final tenders. Following tender evaluation, the University intends to appoint a preferred bidder who will then work up detailed proposals, including securing town planning consent and funding for the project ahead of reaching financial close. The initial selection stage is scheduled to take place in autumn 2022, the negotiation/engagement stage in the first half of 2023 and reaching financial close with a preferred bidder in early 2024. A market engagement event is being held in Durham on 14 September 2022, which will provide further information on the project, the procurement process (including timetable) and include the opportunity to attend a Q&A session meeting with the University project team and its advisers. Parties interested in attending the event and an optional Q&A session should apply using the following link to register their interest: https://www.acquire.durham.ac.uk/acquire/DisplayModules/TradeModules/Negotiations/Opportunities/ViewOpportunityEvent.aspx?EventID=6401&Culture=en-GB The University will confirm arrangements for the market engagement day early September.