Appointment of developer for Leigham Court Road

Description

London Borough of Lambeth (LBL) is entering into a development agreement with a special purpose vehicle wholly owned by Pocket Living Limited (Developer) in respect of the Leigham Court Road development. The Developer will carry out construction of a residential housing scheme (to include affordable homes for LBL to acquire) to be determined through the planning and development process. LBL is using the negotiated procedure without prior publication due to the Developer’s exclusive rights of land ownership on the site to be developed. There is no reasonable alternative site or developer which exists in respect of the land to be developed. For further information, please see the "Description of the Procurement" section of this notice. Lot 1: LBL intends to develop the Leigham Court Road site to deliver circa 90 residential units of which 14 (with provision for 15) are to be affordable homes acquired by LBL on terms agreed. The full scope of the project is estimated to have a value of £60,000,000. LBL has identified the Leigham Court Road site as appropriate for a comprehensive development across three parcels of land. The Developer owns approximately one third of the site being developed, has a land option over a further third (approximately) and LBL owns the final approximate one third of the site. The affordable homes to be acquired by LBL are to be constructed in a single block on a part of the site owned by the Developer or as will be acquired under the option they hold. Due to the Developer’s land ownerships, LBL is relying on Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015 (PCR 2015) to contract directly with the Developer. LBL has: 1. analysed whether the Developer is the only landowner that owns rights to land on the Site on which the proposed development is to take place; and 2. analysed whether there are other viable options than the Leigham Court Road site on which the proposed development could take place. This analysis has confirmed that there are no reasonable alternative sites or developers and LBL's contracting with the Developer is not the result of an artificial narrowing down of the parameters of the procurement. Therefore, the circumstances at Regulation 32(2)(b)(iii) PCR 2015 are met and LBL may contract with the Developer without publishing a contract notice and conducting a competitive procurement. LBL is publishing this notice for full transparency in light of the fact that it is contracting with the Developer pursuant to this exemption from the full rigours of the PCR 2015. LBL intends to enter into a development agreement with the Developer in respect of the site. This development agreement will cover the full scale of development of the site.