Pagabo, which is the procurement specialist, has opened bidding for a developer framework targeting schemes on public land. Pagabo is acting on behalf of Northumberland, Cumbria, Tyne and Wear NHS Foundation Trust with an estimate of £47bn on the four-year arrangement.
The works will run for four years and can be extended for a further 16 months to April 2026.
Planned three framework lots categorized by value
Lot 1: Property development via joint venture or SPV (special purpose vehicle)
Joint developer will be obtained in form of public landowner with its private sector partner of one or more sites for share of profit. Flexibility is provided to add further sites by agreement.
Categorized into three value lots: up to £40m, £40-£100m, and £100m-plus
Lot 2: Long income lease and lease back
This lot includes a strategy to deliver new build assets to the public sector. Indeed, it will be handed to the one who pays a rent (instead of a capital payment). This will be an opportunity for the public sector to receive a capital payment in the form of land receipt in addition to the new building. This lot mainly focuses on delivery of car parks, student accommodation, etc.
Categorized into three value lots: up to £40m, £40-£100m, and £100m-plus
Lot 3: Property development single site by development agreement
A development agreement by public sector landowner with a sign will be present for a one-off single site development subject to satisfactory planning permission and receives land value payment. The developer earns priority return and overage is shared.
Categorized into three value lots: up to £20m, £20m-£40m, and £40m-plus.
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