Giles Lane Student Accommodation Project

Tender description

Intention to award a Public Works contract under Regulation 32(2) (b) (iii) of the Public Contract Regulations 2015 for the development of student accommodation at Giles Lane, Canterbury, Kent. The Negotiated Procedure without Prior Publication is being followed and is justified under Regulation 32 (2) (b) (iii). Lot 1: This Notice sets out the contracting authority's intention to award a works contract using the negotiated procedure without prior publication, in accordance with Regulation 32 of the Public Contracts Regulations 2015. The University of Kent (the "University") intends to enter into a transaction to secure new student accommodation ("the Transaction"). The University will enter into an Agreement for Lease ("AFL") with Deutsche Bank (the "Fund") and Giles Lane Investments Limited (the "Developer") for the construction of 845 new student rooms (the "Development") on a property which contains three separate parcels of land currently under different ownership. Attached at Annex 1 is a plan with coloured shading which indicates the ownership of the parcels of land. The University are the freehold proprietors of the land shaded blue ("University Land"), Citi Nests Canterbury Limited ("Citi Nest") are the freehold proprietors of the land shaded green ("Citi Nest's Land") and St Edmunds School are the freehold proprietors of the land shaded yellow on the Plan (the "School's Land"). Attached at Annex 2 is the redline plan for the demise, which encompasses the University Land, Citi Nest's Land, and part of the School's Land. The Developer has the exclusive option to purchase the University Land and Citi Nest's Land (the "Options"). The Developer will purchase Citi Nest's Land and transfer the freehold to the University. The Developer is finalising an agreement with the School for the transfer of this land to the University. The Developer has obtained planning permission for the Development. The AFL will contain obligations on the Developer to procure the construction of the Development and obligations on the Fund to grant an occupational lease to the University ("the Underlease") on practical completion of the Development. The Underlease will be a full repairing and insuring, financing lease, with limited rights of alienation by the University, containing an indexing rent with cap and collar. On expiry of the Underlease, subject to payment of all rents and interest to the Fund, the University will have the option to purchase the Headlease from the Fund for one pound (£1) (the Fund will also have the option to require the University to purchase the Headlease for one pound (£1)). The Transaction comprises a number of other arrangements, including: • a building contract between the Developer and a building contractor, and the appointments of a professional team by the Developer, with warranties in favour of the University; • arrangements in respect of the construction and maintenance of the squash court, which is described in section IV.1.1; • [licence arrangements to enable the Developer to locate contractor welfare facilities and store other materials on the University's campus;] • the Developer is already progressing the development of phase one on other land known as Landon. This was intended to comprise one large development of student accommodation together with this Development. However, it was progressed independently; • the University will receive a payment on completion of the Transaction. The works can only be provided by the Developer for the following reason: protection of exclusive rights under Regulation 32 (2) (b) (iii) of the Public Contracts Regulations 2015.