NHS trust plans ambitious estates JV

A joint venture partner is being sought for a £50m development programme that could last 20 years with Cheshire & Wirral Partnership NHS Foundation Trust.

Proposed developments that the 50:50 JV will deliver include new facilities in Macclesfield, Birkenhead, Clatterbridge and Chester.

The JV partner will be responsible for 'securing third party funding where required, procuring and managing the supply chain to deliver the schemes, arranging for and conducting land acquisition and disposals where applicable.'

CWP added: "The opportunity is to provide a strategic, development, investment and project management role in delivering new projects but does not include the performance of delivering the detailed design and construction aspects of the new projects themselves. To ensure value for money is achieved at the time when the projects are initiated, and in observing EU procurement principles, it is expected that the supply chain will be competitively tendered via a secondary procurement for each new project delivered via the JV."

The trust is seeking to make a return on investment along with the private partner in the JV. The brief explained: "The potential return…from the developed assets and services will depend on many commercial factors including the number of projects and facilities approved by CWP for the JV, the performance of the SEP, market conditions, and the arrangements for financing and sharing returns agreed between CWP and the strategic estates partner in establishing the JV."

The trust carried out a review of its estate in 2011 using Cyril Sweett and decided a long-term partnership offered the best options for funding and delivery rather than individual project agreements.

Initial strategic developments considered for inclusion in the joint venture include:

  • 76-bed acute mental health inpatient unit in East Cheshire with estimated costs of £22m to £25m to replace the existing Millbrook Unit in Macclesfield
  • Re-provision of a specialist child and adolescent mental health services unit comprising inpatient and educational facilities in Bowmere, Chester. £15m to £20m. Includes disposal of existing site at Pine Lodge, Liverpool Road, Chester.
  • Refurbishment of Springview mental health unit, Clatterbridge, Wirral. £2m. CWP also intends to approach site owners Wirral University Hospital Trust to discuss the acquisition of site with estimated cost £3m
  • Construction of new 15-bed learning disabilities unit in Wirral. £3.5m and disposal of existing site at Ashton House, Oxton, Birkenhead; and
  • Development of two new 15-bed secure service units at Soss Moss, Nether Alderley, near Macclesfield, East Cheshire with estimated costs of £8.6m
  • CWP is also considering an initiative for the centralisation of corporate services with resultant building rationalisations and assets disposals.

Bidders have until 6 June to return their pre-qualifying questionnaires. There will be an open day for bidders on 23 May, for which interested firms must register here . Shortlisted companies will enter into competitive dialogue over the summer, with a preferred bidder named in November and contracts signed by the end of March 2013.

CWP currently occupies 43 sites comprising 61 buildings across Wirral and Cheshire plus shared occupation of 38 sites providing community physical health care in Western Cheshire. Space occupied totals over 558,000 sq ft. Of this 295,000 sq ft is CWP owned.

The JV partnership will be for a period of 15 years with an option to extend the contract for a further five years.

Law firm Bevan Britten advises the trust.

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