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United Kingdom-Reading: Real estate services
Contract award notice – utilities
Results of the procurement procedure
Section I: Contracting entity
Section II: Object
Property Management Services
Thames Water wishes to award one or more framework agreements to supplier(s) capable of providing property management services to the Thames Water Group, across our entire business footprint and more widely if required. This could include (but is not limited to) estates and rents management, long term value creation, disposals, acquisitions and development planning relative to the Thames Water Group and Thames Tideway Tunnel property portfolios. Additionally we are seeking the provision of business rates advisory and appeal services.
Note that your client may be Thames Water Utilities Ltd or another company within the Kemble Water group structure.
TTT Assets — Land Sales, Development and Development Planning
Whole of Thames Water Region.
The scope of this procurement is for the provision of specialist, property management and portfolio development services aligned to the Thames Tideway Tunnel property portfolio.
The Thames Tideway Tunnel will be a 16 mile tunnel running mostly under the tidal section of the River Thames through central London. Started in 2016, construction of the Thames Tideway Tunnel aimed to take seven to 8 years with all work completed by 2024. The sites acquired by Thames Water to enable the construction of the Thames Tideway Tunnel were mostly substantial residential development sites. These land deals included high market values and, in some cases, included complex pre-emption, buy back and overage options.
The key outcomes of this engagement will be to ensure (from a property perspective) that Thames Water can fully comply with ET06 and ET07 and that hand back and disposal, where relevant, of sites can be achieved by the necessary dates and that the operation of Public Realm sites are returned to Thames Water as agreed.
Full detail of ET06 and ET07 can be found in OFWAT’s final determination paper for Thames Tideway Tunnel at the following link:
In total there are c.27 sites made up of c.88 parcels of land, this includes five principle disposal sites and c.14 areas of Public Realm.
Activities that we expect to be supported by this procurement could include (but are not limited to):
— maximising value creation;
— land disposals and sales;
— long term value creation (yield opportunities);
— valuation support and project appraisal;
— public realm (Thames Tideway Public Realm comprises of a handful of very prominent and iconic sites for public use);
— specific lease agreement management (see PQQ documentation for more information);
— rent and licence fee reviews;
— strategic initiatives;
— planning and development planning;
— internal asset transfers;
— alternative land use;
— compulsory purchase advice;
— identifying other potential income stream;
— interaction and engagement management with key stakeholders such as GLA, PLA, EA etc.
Successful organisations should have a proven track record in property management and portfolio development services with an experienced, dedicated workforce to deliver the activities mentioned above. We expect successful organisations to operate as an integrated member of the Thames Water Property team, providing services and presence within the Thames Water offices in Reading and the Thames Tideway offices in central London (recommend 2 days per week unless agreed otherwise).
For the avoidance of doubt the scope for this procurement does not include facilities management.
Thames Tideway Tunnel property portfolio is broken down as follows:
— 5 principal disposal sites where our requirement is to carry out disposal within a mandated timescale whilst maximising value in line with our obligations under ET06 and ET07 regulations;
— 14 public realm sites that we wish to explore revenue opportunities for, including community use, reputational retention and value creation;
— 8 various other hand back sites where we must again comply with out ET06 and ET07 obligations whilst considering maximised value and retention options to Thames Water.
Scope detail for this lot has been included in our PQQ documentation.
Any agreement awarded would be for an initial duration of 5 years with options to extend up to a maximum of 10 years in total. Performance against service levels will be measured and reviewed with appropriate remedies.
Section IV: Procedure
Section V: Award of contract
Section VI: Complementary information
All suppliers who wish to respond to this OJEU notice must request a pre-qualification questionnaire (PQQ) by using the weblink in section I.3) (www.thameswater.co.uk/procurement).
Note that your client may be Thames Water Utilities Ltd or another company within the Kemble Water group structure
Thames Water Utilities Ltd will incorporate a standstill period at the point information on the award of the contract is communicated to tenderers. That notification will provide full information on the award decision. The standstill period, which will be for a minimum of 10 calendar days, provides time for unsuccessful tenderers to challenge the award decision before the contract is entered into.
The Utilities Contracts Regulations 2016 provide for aggrieved parties who have been harmed or are at risk of harm by a breach of the rules to take action in the High Court (England, Wales and Northern Ireland).