One Housing Group – Stewart Street Joint Venture Partner Procurement

Tender description

One Housing Group (OHG) is seeking a joint venture partner for the residential redevelopment of Stewart Street. OHG is a leading affordable housing provider, which owns over 17,000 homes across London and the South-East. Stewart Street comprises 84 occupied units across two blocks and a community centre in Tower Hamlets. OHG has undertaken some early stage design development, resident engagement and a successful ballot. The process is a lean competitive dialogue procedure to enter a 50/50 corporate joint venture. The partner will work with OHG on pre-construction and construction. The partner will be a private sector residential developer experienced in the design and delivery of high quality, high-rise flatted residential redevelopment working in joint venture with public or affordable housing partners. Lot 1: One Housing Group (OHG) is seeking select a private sector partner to work in joint venture to deliver the residential redevelopment of Stewart Street, Isle of Dogs, London. Existing residents and a focus on social purpose are at OHG’s core as an organisation and fundamental considerations for all activities undertaken including redevelopment projects delivering regeneration such as Stewart Street. Following a recent merger OHG is now part of The Riverside Group, creating one of the largest housing associations in the UK. OHG has completed a detailed options appraisal process with existing residents, reviewing options from minor changes to full redevelopment. The outcome was support from most residents for full redevelopment including decanting. A ballot held in March 2022 resulted in 80% support for full redevelopment. To help inform the options appraisal process OHG appointed PRP Architects to undertake early stage design development for full redevelopment of the site including site limitations, in particular minimising off-site decanting. Of the 84 existing units 71 are social rent tenancies, 4 are resident leaseholders and 9 non-resident leaseholders. Reprovision is proposed for social rent tenants and resident leaseholders only. The procurement process is a lean competitive dialogue procedure to appoint a partner to enter into a 50/50 corporate LLP joint venture. This procurement also includes the option (which may only be exercised pursuant to the agreement of OHG and selected joint venture partner) to bring forward the Kingsbridge redevelopment opportunity, to be procured adopting the same principles. The partner will work collaboratively across all elements of design, planning and construction to deliver high quality, private sale and affordable residential development, a new community centre and financial returns. The pre-construction phase will commence immediately following creation of the joint venture and will focus on design development and expedient progression of the scheme to achieve a satisfactory detailed planning consent. It is anticipated the partner will play a leading role here, using its experience to maximise the opportunity. The phased construction process will commence at the earliest opportunity following grant of planning consent, subject to decanting. It is anticipated the partner will utilise its well-established supply chains to manage cost, de-risk construction and ensure quality throughout the construction process and for the sale of completed units on the open market. It is anticipated the partner will be able to draw upon internal expertise to provide development management, project management, construction management, sales and marketing and accounting and administration services to the joint venture at a reasonable and proportionate cost. The partner is expected to be a private sector residential developer with specific experience working in joint venture partnership with public sector or affordable housing partners to design and deliver high quality, high-rise flatted residential development. The partner will be required to leverage experience, expertise, funding and development services to deliver the project. Partners should have sufficient capacity to commence design delivery leading into scheme delivery immediately on the set-up of the joint venture. To be able to maximise the opportunity commercially partners should possess a detailed knowledge of the London residential markets at the appropriate price point for Stewart Street. Application of this knowledge will allow the partner to maximise returns in terms of design, specification, marketing and sales strategy. Partners should have a good understanding of the complexities this brings. Key here is confidence gained from experience in working closely with existing residents throughout the development process. Additional information: This procurement is for the award of a Joint Venture Development Agreement. This opportunity is for the development of Stewart Street, and the optionally the development of Kingsbridge. Limited further information on the Kingsbridge redevelopment opportunity is provided in the Selection Questionnaire. The estimated value relates to Stewart Street only and does not include Kingsbridge.