University of Chichester Project Cornerstone

Tender description

The University is seeking to procure an experienced private sector partner to deliver on-campus student residences at both its Bognor Regis and Chichester campuses under a design, build, finance and operate agreement with an anticipated length of 50 years. Some existing stock will be transferred to the private sector partner as part of the arrangement. It is the University's preference that the agreement will deliver an off-balance sheet transaction (or one that has minimal impact on the University's balance sheet). The University's primary objective is to create new accommodation and to refurbish existing accommodation on both campuses to meet demand but most importantly provide an affordable, high-quality student and living experience. Full details of the project are contained within the procurement documents. Lot 1: The University will enter Competitive Dialogue with potential private sector partners who are shortlisted following the selection phase of the procurement and have demonstrated that they are able to support the University in a Design, Build, Financing and Operation (DBFO) project. The University is seeking to select a private sector partner to structure and deliver an off-balance sheet transaction under a long-term concession. Interested parties will be invited to put proposals forward that consider: 1. A stock transfer and refurbishment of existing 593 on-campus beds at the University's Bognor Regis Campus (BRC) and Bishop Otter Campus (BOC) 2. Delivery of a 176-bed new build scheme at the University's Bognor Regis Campus. 3. Delivery of a new c. 266-bed scheme at Havenstoke Close to replace the up to 110 beds lost at BOC and 168 beds lost when the University relinquishes short-term off-campus leases. 4. Subject to commercial viability, retention by the University of all the student facing elements (soft FM, marketing, room booking, allocation, pastoral care, welfare support etc.) of operations and resident experience, such that the University remains the 'front door' for students. 5. Full transfer of demand risk on the student residences to the private sector partner with the University retaining the right to nominate up to 100% of the beds on an annual basis. 6. A rent setting mechanism and consultation process that meets the needs of students and investors, the University's comparator institutions, the local rental market and supports the funding and on/off campus structures. 7. Minimising the impact on the University's balance sheet. 8. Meeting the University's requirements around the design and quality of refurbishments and new build projects, in order to ensure a seamless, consistent approach between on and off- campus beds. 9. If commercially possible (balanced against the University's appetite for risk) delivering a Capital Receipt to the University at Financial Close, within the other constraints and requirements of the Project. 10. The potential to extend the partnership to meet future accommodation requirements. solution Additional information: Variants include in relation to a bond/income strip funding solution