Public procurement notice: Contract Award Notice
Published: 2021-04-02
Buyer: West Sussex County Council
Country: UK
Contract type: Services
Procedure: Competitive dialogue
CPV classification: 45111000 | 45111291 | 45112700 | 45210000: Building construction work | 45211300
Estimated value: 1000000000 GBP
Award criteria: The most economic tender

Technical requirements: The Council has a substantial portfolio of surplus land and property, both within and outside the County boundary, that can either be disposed of or developed. There is a consensus of opinion within the Council that there is a need to pursue a model where the Council takes more of an active role in property development with the aim of improving the financial returns to the Council and pace of delivery. The Council is therefore seeking a partner with development and funding expertise to work with it to identify opportunities from its land holdings and potentially those of its partners, and bring forward development and funding on these sites. The JV Partnership will also have the opportunity to purchase and develop land and property both within and beyond the County boundary. The Council reserves the right to pursue investment opportunities and land acquisitions during the lifetime of the JV Partnership.
The primary purpose of this procurement is to procure a strategic property development partner(s) for West Sussex County Council (the ‘Council’). It is anticipated this would be through a new or existing wholly owned subsidiary company limited by shares for a contract term of 30 years. The Council is proposing a particular structure for the JV Partnership. However, it is open to the market to design a solution that best meets the Council’s objectives and, therefore, an alternative corporate vehicle can be proposed. The Council is pursuing a JV Partnership approach with a view to securing the optimum solution with a partnership structure which best suits that solution. The Council, through its wholly owned company, intends to enter into a partnership agreement (‘Partnership Agreement’) under which a partner will be appointed to carry out demolition, preparation, design, build, finance, including (but not limited to) housing, retail, new residential units, commercial units, public government buildings and spaces including hospitals, police and ambulance facilities, education and leisure facilities. There may be a requirement for the partner to undertake other specialist areas such as highway works. The type of joint venture legal entity who will appoint the contractor(s) could vary depending on tenderers’ proposals. The Council will invest its land in the JV Partnership but all other funding approaches will be considered as part of the funding solution developed through the competitive dialogue procedure. The Council recognises the opportunity for it to act as a senior lender and is willing to consider any structural mechanisms / alternative joint venture structures that may deliver commercial benefit to both parties. The securing of capital, funding and/or investment will form part of the JV Partnership solution, as will the marketing and positioning of the real estate developed. The partner will provide its development expertise, equity investment and access to private funding. The aforementioned will include the provision of development management services which will be delivered in accordance with the terms provided for under the Partnership Agreement. The JV Partnership will fund and deliver a programme of sites (including residential, commercial, community and other schemes) which are:
The Council and its partner will share in any financial returns from the sale, rental or development of the sites in a manner that is commensurate with the risks taken.
Additional works, services or supplies may be purchased as a result of the award of this procurement.
Please note that the value excluding VAT: Gross development value is estimated to be between GBP 750 000 000 – GBP 1 000 000 000 at today's values.


Winner: Morgan Sindall Investments Ltd
Award value: 1000000000
Number of bids: 7