The Greater London Authority is looking to procure a development partner for a range of industrial sites in east London in the boroughs of Newham, Barking & Dagenham and Havering. The sites range in size and readiness for development so the GLA is seeking a partner to take a portfolio approach to disposal, bringing sites to the market in a coordinated and considered manner. The GLA wishes to ensure that the Mayor's Strategic Objectives are prioritised: including promoting regeneration in east London; bringing back industrial uses to currently underused land; diversifying the mix of occupiers to bring local jobs to the area and securing a minimum land receipt for GLA assets.
The preferred development partner would be expected to develop a development and disposal strategy setting out the short, medium and longer term proposals and a strategic vision for the portfolio.
The sites identified on Appendix 1 total nearly 40 hectares and at this stage the final composition of the portfolio is not yet fixed; the GLA is seeking feedback from potential partners on the scale of the opportunity and the desirability of the package.
It is proposed that the partnership agreement should be time limited with a clearly defined exit strategy; the duration of the partnership should be long enough for a partner to take an investment view and to bring the sites to the market without creating over-supply. The length of the partnership is another element that the GLA would seek feedback from partners on.
The GLA will transfer control of the sites to the development partner but will look to include a disposal mechanism whereby the GLA can work with the partner to prioritise or promote certain key interests where there are local relocations or strategic interventions.
A profit sharing arrangement will be agreed with the development partner. Mechanisms might include GLAP taking profit as a receipt, or reinvesting into a separate vehicle for continued improvement of the local area.
The selected partner would be expected to work closely with the boroughs as the sites largely fall within the London Riverside Opportunity Area and the boroughs priorities remain important in the development process. In addition, it is anticipated that the London Riverside BID would be consulted and engaged in the development proposals.
The GLA is seeking confidential feedback from interested parties on a number of points:
— Proposals for profit share mechanisms,
— Headline approaches to strategic disposal programme,
— Desirable timespan of partnership for realistic delivery,
— Methods of stakeholder engagement & awareness of other bodies operating in the locality,
— Alignment of commercial ambitions with GLA priorities & highlight any potential areas of conflict,
A Restricted route OJEU procurement is most likely to be published in early summer 2014.
Estimated value excluding VAT:
Range: between 60 000 000 and 90 000 000 GBP
Lots
This contract is divided into lots: no
