- 1. HAMPSHIRE COUNTY COUNCIL
- 2. Hertfordshire County Council
- 3. Isle of Wight Council
- 4. Kent County Council
- 5. Norfolk County Council
- 6. Suffolk County Council
- 7. West Northamptonshire Council
- 8. West Sussex County Council
- 9. East Sussex County Council
- 10. Cambridge City Council
- 11. Essex County Council
Section one: Contracting authority
one.1) Name and addresses
HAMPSHIRE COUNTY COUNCIL
The Castle
WINCHESTER
Country
United Kingdom
NUTS code
UKJ36 - Central Hampshire
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.1) Name and addresses
Hertfordshire County Council
Hertford
Country
United Kingdom
NUTS code
UKH2 - Bedfordshire and Hertfordshire
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
https://www.hertfordshire.gov.uk/home.aspx
one.1) Name and addresses
Isle of Wight Council
Newport
Country
United Kingdom
NUTS code
UKJ3 - Hampshire and Isle of Wight
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.1) Name and addresses
Kent County Council
Maidstone
Country
United Kingdom
NUTS code
UKJ4 - Kent
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.1) Name and addresses
Norfolk County Council
Norwich
Country
United Kingdom
NUTS code
UKH1 - East Anglia
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.1) Name and addresses
Suffolk County Council
Ipswich
customer.services@suffolk.gov.uk
Country
United Kingdom
NUTS code
UKH1 - East Anglia
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.1) Name and addresses
West Northamptonshire Council
Northampton
enquiries.nbc@westnorthants.gov.uk
Country
United Kingdom
NUTS code
UKF2 - Leicestershire, Rutland and Northamptonshire
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
https://www.westnorthants.gov.uk/
one.1) Name and addresses
West Sussex County Council
Chichester
Country
United Kingdom
NUTS code
UKJ2 - Surrey, East and West Sussex
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
https://www.westsussex.gov.uk/
one.1) Name and addresses
East Sussex County Council
Lewes
purchasing.queries@eastsussex.gov.uk
Country
United Kingdom
NUTS code
UKJ2 - Surrey, East and West Sussex
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
https://www.eastsussex.gov.uk/
one.1) Name and addresses
Cambridge City Council
Cambridge
Country
United Kingdom
NUTS code
UKH1 - East Anglia
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.1) Name and addresses
Essex County Council
Chelmsford
Country
United Kingdom
NUTS code
UKH3 - Essex
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.2) Information about joint procurement
The contract involves joint procurement
one.3) Communication
The procurement documents are available for unrestricted and full direct access, free of charge, at
https://in-tendhost.co.uk/hampshire/aspx/Home
Additional information can be obtained from the above-mentioned address
Tenders or requests to participate must be submitted electronically via
https://in-tendhost.co.uk/hampshire/aspx/Home
one.4) Type of the contracting authority
Regional or local authority
one.5) Main activity
Economic and financial affairs
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
ACCESS Pool Investment Manager for Real Estate - UK Core
Reference number
CR19851
two.1.2) Main CPV code
- 66131100 - Pension investment services
two.1.3) Type of contract
Services
two.1.4) Short description
The Authority is seeking an investment manager to manage and grow the assigned UK Core Real Estate mandates of the ACCESS pool members.
This procurement is being undertaken by Hampshire County Council (the Authority) on behalf of the Administering Authorities who together comprise the ACCESS Pool.
The ACCESS Pool is a collaboration of 11 like-minded Local Government Pension Scheme Authorities, investing the pensions of over one million members, delivering strong investment performance, achieving greater cost efficiency and benefiting from the best of local authority procurement. Further information regarding the ACCESS Pool can be found here: https://www.accesspool.org/.
two.1.5) Estimated total value
Value excluding VAT: £2,000,000,000
two.1.6) Information about lots
This contract is divided into lots: No
two.2) Description
two.2.3) Place of performance
NUTS codes
- UKF2 - Leicestershire, Rutland and Northamptonshire
- UKH - East of England
- UKJ2 - Surrey, East and West Sussex
- UKJ3 - Hampshire and Isle of Wight
- UKJ4 - Kent
two.2.4) Description of the procurement
Hampshire County Council is running this procurement on behalf of ACCESS pool and is seeking to appoint an investment manager to manage and grow the assigned UK Core Real Estate mandates of the ACCESS Pool members.
The procurement will be carried out as a two stage Restricted procedure.
At the conclusion of the procurement procedure, each named Authority will enter into its own contract with the successful Supplier at their own discretion.
The duration of the contract(s) shall be thirty (30) years, subject to a five (5) yearly review cycle during this period.
Full details of the requirement can be found in the Specification at Annex 1 of the ITT documentation by registering within Hampshire's instance of the In-Tend e-procurement platform at the following URL: https://in-tendhost.co.uk/hampshire/aspx/Home
two.2.5) Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
two.2.6) Estimated value
Value excluding VAT: £2,000,000,000
two.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Duration in months
360
This contract is subject to renewal
No
two.2.10) Information about variants
Variants will be accepted: No
two.2.11) Information about options
Options: Yes
Description of options
Across the 11 ACCESS Authorities there is currently a total aggregated exposure of c. £4.9 billion to UK Real Estate, relative to a target exposure of c. £5.8 billion (this is based on each Authority's current strategic asset allocation and latest overall portfolio valuation). Of this existing c. £4.9 billion exposure, four Authorities have direct UK core property portfolios totalling c. £2.5 billion and the other seven Authorities have indirect UK core exposure allocations (via fund of funds allocations or single fund allocations) totalling c. £2.1 billion. In addition, c. £0.3 billion in aggregate has been allocated by some Authorities to alternative UK strategies via single-fund allocations.
The current expectation is that the c. £2.1 billion indirect UK core exposure will create the foundation of the ACCESS pooled UK Core Real Estate mandate. The respective Authorities are expected to redeem from their fund of funds allocations/ single fund allocations and invest the redemption proceeds into the pool.
However, although possible, not all the c. £2.1 billion indirect UK core exposure is expected to be transitioned to the pool. There are some existing allocations which are not expected to be redeemed initially, and it is also expected that some of the redemption proceeds may be allocated to a separate ACCESS UK Alternative Real Estate solution.
There is scope for the total mandate size to significantly increase in scale (and - although unlikely based on information available currently - to possibly decrease), both initially and throughout the life of the mandate, due to the following factors:
i. Authorities are currently undertaking reviews of their strategic asset allocations following the 31 March 2022 triennial actuarial valuations (these are expected to be completed by Q1 2023). The results of these reviews may affect each respective Authority's target allocation to UK Core Real Estate. This may have the impact of further increasing the capital that Authorities will collectively allocate to the UK Core Real Estate pool (it is also possible that the results may lead to a decrease in the amount allocated). For context, were each Authority with existing indirect UK core real estate exposure to increase their target exposure by 1%, this would result in an additional c. £0.3 billion being potentially available to be allocated to the pool.
ii. It has been assumed that a portion (c. £0.3 billion) of the total redemption proceeds from the existing indirect UK core exposure will be allocated to the ACCESS UK Alternative Real Estate solution. However if this does not turn out to be the case then this will likely be allocated to the ACCESS UK Core Real Estate mandate.
iii. Based on discussions with some Authorities, it has further been assumed that c. £0.3 billion in existing single-fund allocations will not be redeemed immediately for strategic reasons. However if this does not turn out to be the case then this will likely be allocated to the ACCESS UK Core Real Estate mandate.
iv. For the anticipated initial mandate size for the pool (£0.75 billion - £1.25 billion) the low end of the range has been determined by assuming that only around half of the expected redemptions will be transitioned to the pool i.e. there is scope for an additional c. £0.75 billion to be allocated to the pool if all respective Authorities ultimately decide to transition.
v. In addition to the seven Authorities with existing indirect UK core exposure, there are four further Authorities who have existing portfolios of direct UK core exposure. As noted previously, it is anticipated that initially one of these Authorities may appoint the investment manager to the ACCESS pooled solution to manage its own direct holdings. However, over the life of the mandate it may be the case that one, two or all of the other three Authorities will seek a similar arrangement. Across these three Authorities, the current aggregated market value of their direct UK portfolios is c. £1.8 billion.
two.2.14) Additional information
Note: The stated contract value is an estimate of fees payable over the life of the contract based on anticipated mandate size and maximum fees set out in the Pricing Schedule. The actual fees payable will depend on these and other relevant factors applicable over the course of the mandate. This amount should not be taken as a guaranteed value or payment. Specifically, the estimated total contract value shown above has been derived by making a number of assumptions at the time of writing, which include: the authorities' current exposure of £4.9 billion as initial assets in the mandate; a contract length of 30 years; a maximum blended fee rate of 50 basis points; a constant asset growth assumption of 6.0%. p.a. It should be noted that in practice the actual levels of assets, fees and growth rates are highly likely to differ materially from these assumptions over the term of the mandate. For further details on the expected size of this mandate, please see 'Project Background' in Section 1 of the ITT.
Section three. Legal, economic, financial and technical information
three.1) Conditions for participation
three.1.2) Economic and financial standing
Selection criteria as stated in the procurement documents
three.1.3) Technical and professional ability
Selection criteria as stated in the procurement documents
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Restricted procedure
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
four.2) Administrative information
four.2.2) Time limit for receipt of tenders or requests to participate
Date
23 September 2022
Local time
2:00pm
four.2.3) Estimated date of dispatch of invitations to tender or to participate to selected candidates
18 October 2022
four.2.4) Languages in which tenders or requests to participate may be submitted
English
Section six. Complementary information
six.1) Information about recurrence
This is a recurrent procurement: No
six.4) Procedures for review
six.4.1) Review body
High Court of England and Wales
London
Country
United Kingdom