Making homes happen

Invitation to Tender Guidance Document Phase 4a, Tattenhoe Park, Milton Keynes Submission Deadline: 13:00 on 18th October 2019

HOMES ENGLAND

Contents Section 1: Introduction ..................................................................................................................................................... 3

Section 2: The Site ............................................................................................................................................................ 4

Section 3: Terms of Offer & Contracting .......................................................................................................................... 6

Section 4: Homes England Objectives ............................................................................................................................. 6

Section 5: Developer Responsibilities .............................................................................................................................. 7

Section 7: Tender Submission Guide ................................................................................................................................ 8

Section 8 – Evaluation of Bids .......................................................................................................................................... 9

Section 9 – Bid Submission Instructions ........................................................................................................................ 10

Section 10 – Contact Details ........................................................................................................................................... 11

HOMES ENGLAND

Development of Homes England Land: Phase 4a, Tattenhoe Park, Milton Keynes

Section 1: Introduction This Invitation to Tender (ITT) has been prepared to provide guidance and information to interested bidders

in respect of Homes England’s (HE) 0.77 hectare (1.9 acre) site located to the south east of Tattenhoe Park,

Milton Keynes (referred to throughout this Invitation to Tender (ITT) as Phase 4a, Tattenhoe Park.

It is HE’s intention to appoint a single preferred development partner for this opportunity following the

evaluation of tenders realised from this ITT process.

Once you have read the information provided in this ITT, and reviewed the supporting technical pack that

accompanies this opportunity, you are invited to populate the bidding template provided within the

dataroom to outline the terms of your offer.

The ITT process is being managed on HE’s behalf by Savills (UK) Limited. All queries should be directed

through them via the contact details provided later in this document.

The full information pack and bidding template are included within the online dataroom accessed at

www.savills.com/tattenhoe4a

HOMES ENGLAND

Section 2: The Site Homes England’s interest at Phase 4a, Tattenhoe Park comprises 0.77 ha (1.9 acres) of greenfield land.

Renewal of the outline planning permission was granted in August 2017 (reference: 17/00918/OUT) for

residential development of up to 1,130 dwellings, a mixed use local centre, primary school (now delivered),

community facilities, hotel and public house, public open space and associated landscaping and

infrastructure.

Phase 4a has been identified to deliver a scheme of approximately 35 dwellings by a small to medium sized,

local house builder with an emphasis on good design. The site is an irregular shaped parcel of greenfield

pastureland with a large oak tree located in the centre. Access is from Snelshall Street.

The boundary of the land to be sold under this procurement exercise is included within the dataroom.

Phase 4a is situated on the south east of the Tattenhoe Park, a major development extension to the east of

Milton Keynes. This phase is located directly west of the village of Tattenhoe which provides access to a

range of community facilities, services, Tattenhoe Sports Pavillion, Giles Brook Primary School and Priory

Rise Primary School.

Milton Keynes City Centre lies approximately 8.8km (5.5 miles) to north-east as the crow flies (circa 6.9

miles by road). Phase 4a is located approximately 14.18 km (8.81 miles) west of Junction 13 of the M1 via

the A421 - providing convenient access to excellent north/south and east/west transport routes. Bletchley

railway station is located 4.6 km (2.9 miles) to the east and Milton Keynes central railway station is located

5.2 km (3.5 miles) to the north east providing direct trains to London Euston in approximately 33 minutes.

Milton Keynes is a lively modern city with a great range of shops, restaurants and entertainment. Milton

Keynes has several stunning lakes with provides opportunities for waters sports along with scenic areas for

walking and hiking. The site can be easily accessed by road and rail, with Milton Keynes Central.

The outline planning permission was subject to various conditions. Homes England have discharged the

majority of the planning conditions.

Constraints

Details of all constraints can be found on drawing 34118-LEA-CVD-319 contained within the dataroom.

A large oak tree stands at the eastern boundary within Phase 4a, this tree is of significant arboricultural

value and is subject to a TPO. The eastern boundary of Phase 4a is protected by an earth bund, this approach

has been implemented across Tattenhoe Park to mitigate trespass and consists of a linear bund

approximately 1m high and 1m wide. To the north a historical mound of earth is planted with established

woodland, the crest of the mount is situated 2m above the northern boundary. To the west of Phase 4a lies

one of three swales across Tattenhoe Park. This swale serves Phase 4a, Phase 6 and a portion of Phase 4

and connects into a retention basin situated at the southern boundary of Tattenhoe Park. The northern and

western boundaries of Phase 4a have been adopted by Park’s Trust.

HOMES ENGLAND

The roadway to the east of Phase 4a was installed across Tattenhoe Park circa 2008, the foul water and

surface water sewers were laid beneath the road at the same time. The foul sewers have subsequently

been adopted by Anglian Water.

An assessment of the capacity of the surface water systems across Tattenhoe Park have been undertaken

by Wood (formerly Amec Foster Wheeler). “Tattenhoe Park and Kingsmead South Flood Risk Assessment,

change has been updated from 30% to 40% and another report was prepared in March 2017 as part of the

Environmental Assessment, to assess the impact of that change in the climate change percentage in the

drainage strategy, “Tattenhoe Park Flood Risk Assessment Update” (38272rp005i1).

A CCTV survey of the surface water sewer adjacent to the site was completed in 2017. The survey identified

no issues with capacity, damage or blockages. The CCTV Survey and Drainage Reports are included within

the dataroom.

A GPR survey of Tattenhoe Park was conducted in 2017. The GPR Survey was conducted alongside the

Utility drawing, both of which can be found in the dataroom. The GPR Survey did not cover Phase 4a, as no

utilities were shown on any of the Statutory Undertaker’s plans. The GPR Survey confirmed no discrepancy

from the statutory plans.

An Ecological Report was conducted by Wood (formerly Amec Foster Wheeler) in 2017 and a Phase 1 Survey

in 2018. The Ecological Reports identify the oak tree as having a low roost value for bats. No other ecological

constraints are identified.

A Transport Assessment undertaken by Wood (formerly Amec Foster Wheeler) in 2017 concluded that ‘the

previously forecast 2016 data prepared as part of the 2006 application is evidenced to be significantly higher

than the current situation and the forecast 2026 future years date. Subsequently, it is considered that the

highway network has more spare capacity than assumed during the 2006 TA. As such it can be concluded

that the junction mitigation proposals promoted through the 2006 permission remain robustly valid and

that all junctions could satisfactorily accommodate the proposed development traffic with the inclusion of

these measures.’

An Archaeological Survey Report was conducted in 2007. The Report identified little archaeological value

within Phase 4a.

Several Ground Investigation Reports and Intrusive Geo-Environmental Surveys have been conducted. The

most recent investigations were undertaken by WYG in 2018. Within Phase 4a a Pell Frischmann GI report

conducted in 2006 identified an elevated concentration of Cadmium within Phase 4a, however this anomaly

was not able to be replicated by WYG in their investigation in 2018. Across Tattenhoe Park the maximum

recorded cadmium concentration was 0.35mg/kg, significantly below the C4SL criterion (22mg/kg) and not

indicative of any human health risk.

Previous trial pits dug by WYG in 2017 identified a topsoil layer of 0.35m comprising soft brown slightly

sandy clay and beneath this a layer of firm to stiff brown mottled grey gravelly clay with pockets of sand.

The depth of this trail pit was 3.5m.

HOMES ENGLAND

The Ground Investigation Report conducted by Pell Frischmann in 2006 included boreholes across

Tattenhoe Park. The nearest borehole was surveyed in 1992 to a depth of 5m. Below 3.5m the soil was

identified to be stiff to very stiff, dark grey, fissured, sandy silty clay with some medium to fine chalk and a

little medium to fine flint. Whilst it is not thought that the conclusions of the borehole investigation will

have changed, due to the length of time since the survey Homes England are currently in the process of

procuring a new deep borehole survey across Tattenhoe Park.

Section 3: Terms of Offer & Contracting It is HE’s preference to receive offers submitted on a subject to reserved matters planning permission basis.

The site will be sold via a conditional freehold transfer.

The conditional freehold sale will require the developer to pay a 10% deposit upon exchange of the

agreement. The agreement will define both the conditions that must be discharged and a long stop date

12 months following exchange of contract by which the developer complete subject to a pending appeal

decision only. The agreement will define that the developer must submit their reserved matters application

within 3 months following exchange of contracts.

The site shall be protected by way of three distinct overage mechanisms as follows:

Flip Sale – an overage will be payable where the developer sells the site or any part of it without

having carried out any material development charged at 100% of the value of any uplift within a two

year period following the transfer of the site to the developer. Once the developer has commenced

material development of the site this overage shall fall away.

Planning Overage – where the developer secures a greater net developable area pursuant to its

reserved matters application for the site the purchase price shall be increased pro rata on a square

footage basis and added to the price payable on completion.

Base Overage – a base overage shall apply against an uplift in disposal values against a benchmarked

set of base values. This percentage shall increase following the expiry of a fixed period which aligns

with the developer's build programme to incentivise delivery of the development in line with HE's

pace requirements.

Section 4: Homes England Objectives HE’s objectives from this disposal exercise are as follows:

To dispose of Phase 4a Tattenhoe Park to a small to medium sized house builder;

To achieve the best land values possible from the site;

HOMES ENGLAND

For proposals to come forward that are fully compliant with local planning policy (and / or where applicable, the terms of the outline planning consent) and which would be capable of securing planning consent in the shortest timescale possible;

For the scheme to demonstrate high standards of design (preferably embedding Building for Life 12 principles);

For all dwellings delivered across the scheme to be sold freehold (with the exception of apartment dwellings), and therefore free from any ground rent arrangements.

Section 5: Developer Responsibilities The following section sets out the services that HE’s selected development partner would be required to perform.

To pay the agreed land value premium in full

In circumstances where Homes England has accepted an offer that is to be paid on deferred terms, the bidder must 1) provide a means of security to secure the outstanding payment(s) and 2) must complete all staged payments in full by the earlier of i) the midpoint of the construction programme (in time) or ii) the midpoint of your sales programme (by volume of sales)

Where applicable, to secure all necessary planning consents, listed building approvals and building regulation approvals in respect of their scheme – and discharge all associated conditions that might be applied to these consents

Where applicable, discharge payment of the scheme’s agreed S106 cost

Pay all SDLT costs owed in accordance with HMRC requirements

It should be noted that the site is Opted to Tax – meaning VAT is payable against the purchase price tendered. Under certain qualifying circumstances, it may be possible for you to request that Homes England dis-applies VAT against the site (for example, if you are a Registered Provider). If you intend to do this, you must make this intention clear within your tender submission – along with the rationale that makes your organisation eligible for dis-applying VAT.

PLEASE NOTE: In the event that you have a legitimate claim to dis-apply VAT, Homes England would be required to repay all VAT it has claimed associated with its past spend against the site. Since this would be a non-recoverable cost to Homes England – the cost of the VAT that Homes England would be forced to repay to HMRC would be netted off your financial offer.

Raise the level of finance required to cover the scheme’s peak funding requirement – and arrange any credit lines that may be needed to meet cost overruns / cash flow shortfalls

In respect of the affordable housing elements of the scheme, the developer must identify and work with an RP partner to take on responsibility for these tenures

HOMES ENGLAND

Upon transfer of the freehold, coordinate effective management of the site and discharge all statutory health and safety duties

Arrange the delivery and management of all construction activities across the site in compliance with the terms of the planning approval

Secure all appropriate warranty accreditations (NHBC, etc…) for completed dwellings such as to ensure they are insurable / mortgageable

Manage all marketing and sales of dwellings across the site

Carry out snagging activities and provide all appropriate maintenance and aftercare services to buyers

Agree and complete adoption agreements with the local authority in respect of key roads within the development and with the local authority or a nominated management company in respect of the scheme’s public open spaces

Comply with any duties / services required of the developer under the terms of the warranty agreements provided to buyers

Refrain from including ground rents as part of their sales / revenue strategy for the scheme (unless where demonstrated as absolutely necessary in connection with flatted accommodation)

Provide Homes England with the ability to approve the reserved matters application to be submitted within 3 months following exchange of contracts.

Section 6: Tender Submission Guide For a tender submission to qualify as being compliant, bidders must submit the following suite of information:

1. A fully populated version of the bidding template provided in the dataroom. 2. An A3 colour layout plan(s) for your scheme

3. If available, drawings / images of the house types you would propose to include in your scheme (please note, this information is preferable, however not mandatory)

4. A development appraisal demonstrating sums which are consistent with the costs, values and land value, as set out in the bidding template form

5. Evidence of the sources of seed capital / equity and loan funding that you will draw from to fund your development, together with details of how any cost overruns would be funded. Please note, you do not need to provide evidence of your loan funding if you are seeking loan funding support from the Homes England administered Home Building Fund

HOMES ENGLAND

6. Evidence of your past track record for delivery and examples of schemes of an equivalent / larger scale that you have developed. Specifically, please provide a short narrative on the history of your organisation, the overall scale of development your organisation has been responsible for delivering, the expertise and experience of your project delivery team and a case study / case studies of your previous developments

7. A programme / timetable for your scheme in gantt chart format – covering the pre-construction, construction and sales phases of the project

Section 7 – Evaluation of Bids The formal bid evaluation process will involve:

Determination of each bidder’s tender submission against prescribed pass / fail criteria

Assessment of the most commercially favourable land value offers Pass / Fail Criteria Bidders must achieve a ‘pass’ against Homes England’s assessment of the following themes for their bid to be determined as eligible / compliant:

The bidder must fully populate the bidding template included within the dataroom

The bidder must submit an A3 colour layout of their scheme layout

The bidder must submit a development appraisal with costs, values and land values corresponding to the input provided in the bidding template

The bidder must provide evidence of funding support

The bidder must provide evidence of their company track record and expertise of their personnel

The bidder must provide a gantt chart format delivery programme

The bidder must submit their tender by the tender close date described in the document

The bidder must submit their tender in accordance with the submission instructions described in this

document

At Homes England’s discretion, we may seek to engage in a clarification process with bidders if further information is required or else we are not satisfied with the response provided. For example, we may seek to engage in clarifications if we are not satisfied by the accuracy of your abnormal cost appraisal, your suggested approach to securing a planning consent or the evidence of your sources of funding. If, following the outcome of this clarification process, we continue to have concerns in respect of the robustness of any areas of your bid – you will be scored a ‘fail’ and your bid will not be considered further. Homes England’s decision in this regard is final. By submitting a tender, bidders are recognised as being in acceptance of this principle. Land Value Assessment

HOMES ENGLAND

Only bid submissions that have achieved a ‘pass’ in line with all of the criteria set out above will have their land value offer evaluated. Homes England will assess the ‘conditional’ offers submitted by bidders. Recognising that some bidders may have elected to bid on deferred payment terms, Homes England will seek to equalise all offers by calculating the NPV of each offer based on a 3.7% discount factor rate and using the date on which this bid competition closes as the base date for calculations. The highest unique (NPV adjusted) land value offer would be treated as the ‘best offer’ against the conditional land value assessment. In this regard, please note that Homes England would not necessarily be bound into accepting the highest conditional offer . Bidders should also note that any offers in respect of overage will not be accounted for in the land value assessment process. Homes England’s decision in this regard is final. By submitting a tender, bidders are recognised as being in acceptance of this principle.

Section 8 – Bid Submission Instructions The bid deadline for this site opportunity is 1pm, 18th October 2019.

Homes England and Savills intend to host a viewings day on site to discuss any technical, planning or legal

related enquiries on Monday 30th September 2019. A timeslot should be booked through Lucy Muir at

Savills (lucy.muir@savills.com).

Bids must be submitted in an electronic format to the following email address: ajones@savills.com Under no circumstances should bidders submit their tenders to an alternative email address (for the avoidance of doubt, this includes the Homes England project manager and the site’s agent) This is to ensure that all submissions are dealt with in an equal, fair and legally compliant way. Tender submissions will only be accessed after the agreed deadline has passed by Homes England’s Central Procurement Team – who will convene a Tender Opening Panel as part of the process of opening each tender submission received, and which will ensure that the opening of tenders are independently witnessed. Your emailed submission should include the following reference in the title field:

D20026 - Land at Phase 4a Tattenhoe Park, Milton Keynes Bids submitted late, or not following the procedures set out above, will be deemed as non-compliant and the tender submission will not be included in the evaluation process.

HOMES ENGLAND

Section 9 – Contact Details Should bidders wish to seek clarity on any aspect of this opportunity or ITT, then queries should be directed through to Homes England’s appointed agents, as follows: Abigail Jones ajones@savills.com / 01223 347094 Lucy Muir lucy.muir@savills.com / 01223 347058

HOMES ENGLAND

enquiries@homesengland.gov.uk0300 1234 500 gov.uk/homes-england