Published date: 2 September 2021

Awarded contract - This means that the contract has been awarded to a supplier.


Closing: 17 August 2021, 5pm

Contract summary

Industry

  • Building and facilities management services - 79993000

Location of contract

South East

Value of contract

£98,000,000

Procurement reference

Meadows Phase 2B/ 2C Student Accommodation Project

Published date

2 September 2021

Closing date

17 August 2021

Closing time

5pm

Contract start date

18 August 2021

Contract end date

17 August 2071

Contract type

Service contract

Procedure type

Other: VEAT Notice 2021/S 000-011469 issued due to restrictive covenant

Contract is suitable for SMEs?

No

Contract is suitable for VCSEs?

No


Description

In 2012, the University sought partners to establish a long term partnership to facilitate the design, build, finance and maintenance of 648 new bedrooms of student accommodation
within the University of Essex Knowledge Gateway site ready for the start of the 2013/2014 academic year, together with the potential leasehold sale of an established residential development comprising 767 bedrooms (the "Phase 1" project). ULiving Consortium were identified as the successful tenderer, and subsequently entered into the contract (via a special purpose vehicle called ULiving@Essex Limited) to provide the required services with the University. In line with market norms, the Phase 1 project documentation contained a Restrictive Covenant which restricted the University's ability to provide additional student
accommodation unless certain student to bed ratio and occupancy track record tests were met.
Contracts relating to a second phase of residences ("Phase 2A") were entered into with the ULiving Consortium (via a special purpose vehicle called ULiving@Essex2 Limited) pursuant
to a Voluntary ex Ante Transparency Notice (published 23 May 2015), delivering 643 bedrooms (on a design, build, finance and maintenance basis) adjacent to Phase 1. The VEAT Notice was used as the contractual Restrictive Covenant tests on Phase 1 had not been satisfied. Again, in line with market norms, the Phase 2A project documentation contained a Restrictive Covenant which restricted the University's ability to provide additional student
accommodation unless certain student to bed ratio and occupancy track record tests were met. The tests for Phase 1 and Phase 2A are set out in VI.3. Phase 2B/2C is the third phase of
the residences development and the University wishes to contract for the provision of a further 1,262 units of student residential accommodation on a design, build, finance and
operate basis. The ULiving Consortium will (through the use of a special purpose vehicle called ULiving@Essex3 LLP) operate the residences for c 50 years following completion of
construction. The sites are located at the University's Colchester Campus. Planning documentation providing further detail can be found here -
https://www.colchester.gov.uk/planning-app-details/?id=e2fc087d-84bee911-
a976-000d3ab42b3b#ValidationSummaryEntityFormView.
The Restrictive Covenant tests under the Phase 1 and Phase 2A documentation have not been satisfied at the time of
publication of this notice, meaning that the ULiving Consortium has exclusive rights to deliver Phases 2B and 2C at present and for at least the next 3 years (September 2024 being the earliest point at which the tests can now be met) as the ULiving Consortium (via ULiving@Essex Limited and ULiving@Essex2 Limited) will only consent to the development taking place if the ULiving Consortium (via ULiving@Essex3 LLP) also delivers Phases 2B and 2C.


More information

Additional text

The Contractor is the only economic operator which can deliver the development due to the existence of exclusive rights owned by it in connection with the services required (pursuant to Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015).
In 2012, the University sought partners to design, build, finance and maintain 648 new student bedrooms, together with the potential leasehold sale of an established development comprising 767 bedrooms ("Phase 1"). ULiving Consortium were identified as the successful tenderer, and subsequently entered into contract (via a special purpose vehicle called ULiving@Essex Limited) with the University to deliver Phase 1. In line with market norms, the Phase 1 documentation contained a Restrictive Covenant which restricted the University's ability to provide additional student accommodation unless certain tests were met. Contracts relating to the development of additional student residences ("Phase 2A") were entered into with the ULiving Consortium (via ULiving@Essex2 Limited) pursuant to a Voluntary ex Ante Transparency Notice (published 23 May 2015), delivering 643 bedrooms (on a design, build, finance and maintenance basis) adjacent to Phase 1. The VEAT Notice was used as the Restrictive Covenant tests on Phase 1 were not satisfied. In line with market norms, the Phase 2A documentation contained a Restrictive Covenant which restricted the University's ability to provide additional student accommodation unless certain tests were met.
The University wishes to contract for the provision of a further 1,262 units of student
residential accommodation on a design, build, finance and operate basis. The Restrictive Covenants on Phases 1 and 2A prevent the University from carrying out the development without the consent of companies related to the Contractor unless certain tests are satisfied.
The tests are:
(a) for each of the previous three (3) consecutive Contract Years the ratio of Total Student Demand to Total Bed Supply has not fallen below 1.5:1.00;
(b) the number of proposed further rooms is such that when occupied the ratio of Total Student Demand to Total Bed Supply will not fall below 1.5:1.00 for the following three (3) Contract Years assessed on the basis of the University's projected student number returns
to HEFCE (now HESA);
(c) for each of the previous three (3) consecutive Contract Years at least ninety eight per
cent (98%) of the Rooms within the Accommodation have been occupied for the whole of the relevant Letting Period. Test (a) was not met for the Contract Years 2017/18 and 2018/19 and test (c) has not been satisfied. This is the case for both Phases 1 and 2A. The companies related to the Contractor (such related companies being ULiving@EssexLimited and ULiving@Essex2 Limited) will only consent to the development taking place if it is carried out by the Contractor (via ULiving@Essex3 LLP). The Contractor therefore has exclusi


Award information

Awarded date

17 August 2021

Contract start date

18 August 2021

Contract end date

17 August 2071

Total value of contract

£98,000,000

This contract was awarded to 1 supplier.

ULiving Consortium (acting via ULiving@Essex3 LLP)

Address

3rd Floor South Building,
200 Aldersgate Street
London
EC1A 4HD

Reference

No reference - other

Supplier is SME?

No

Supplier is VCSE?

No


About the buyer

Address

Wivenhoe Park
COLCHESTER
CO43SQ
England

Email

procure@essex.ac.uk