Pagabo plan for £47bn developer-led public land framework

Aaron Morby 2 years ago
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Procurement specialist Pagabo is planning to invite tenders next month for a developer framework for schemes on public land.

Pagabo is acting on behalf of Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust which plans to establish the framework for developer-led schemes .

It has put an estimate of £47bn on the four-year arrangement which will be open to the whole of the public sector.

Jason Stapley, managing director at Pagabo, said: “We have been in consultation with key developers and local authorities since September 2019 and are really pleased to be bringing the first developer-led framework to the market at this time to help public sector bodies procure work with developers that is critical to building a better future.

“The framework will not only to save time and effort when procuring a developer, but will also save developers a lot of money on bidding for opportunities – which for some larger development schemes can be as high as £1m.

“It has of course been a worrying time for the sector, with construction output dropping by record amounts, but despite the exceptional circumstances we have seen a tremendous amount of enquiries still coming through to us from the public sector – showing the vital role that frameworks have on the road to recovery.

“Government has already indicated that infrastructure around the UK is to be a focus – and a huge part of a ‘return to normal’, and a framework that allows developers the ability to procure works through a compliant, and simple to use framework that will help with creating a more robust sector all round.”

A market engagement meeting will be held on the 30 June via Zoom to set out further details of the procurement plan. To register click here.

Planned framework lots


Lot 1: Property Development via joint venture or special purpose vehicle

Public landowner becomes joint developer with its private sector partner of one or more sites for share of profit. Flexibility to add further sites by agreement.

Lot 2: Long Income Lease and Lease Back

Deliver new build asset to the public sector who pays a rent (instead of a capital payment); opportunity for public sector to receive a capital payment in the form of land receipt in addition to the new building. Mainly for delivery of car parks, student accommodation, etc.

Lot 3: Property Development Single Site by Development Agreement

Public sector landowner signs a development agreement for a one-off single site development subject to satisfactory planning permission and receives land value payment; developer earns priority return; overage shared.

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