BASINGSTOKE LEISURE PARK PRIME DEVELOPMENT OPPORTUNITY - 62 ACRES EXECUTIVE SUMMARY INTRODUCTION Leisure Park offers a prime development opportunity. Basingstoke • Basingstoke Leisure Park is a prime leisure led development and Deane Borough Council (BDBC) wish to create a regional leisure destination of opportunity, with the 62 acre site offering significant scope significance and encourage reinvestment within the existing leisure park facilities. for change. BDBC is seeking a long term development partner to realise this vision.

• A prominent, highly visible site in a strategic location with This brochure describes the development opportunity and provides guidance to excellent road and rail links, with easy and direct access to prospective development partners in preparing submissions in response to this brief. M3 and Basingstoke’s town centre and train station.

• Opportunity to enhance leisure offer to create a facility of significant regional importance. The Council is committed to using its assets and resources to regenerate:

• Already an established and successful leisure offer • Basing View – Muse selected as development partner for 65 acre office park present, providing a strong platform for improvement. regeneration. £6m invested so far by BDBC with more investment potentially to follow. • The Malls - purchase of head lease and £6m of investment and refurbishment. • Occupiers include Odeon, Premier Inn and Gala.

• Very positive population characteristics: a catchment population of 1.4m lies within 40 minutes, rising to 4.4m within 60 minutes. THE SITE The core 53 acre (21 ha) Basingstoke Leisure Park offers a range of existing leisure facilities. • Newcomers to the Leisure Park, Airkix has opened this Some of the facilities at the Park are dated and have suffered from enhanced competition from Summer accompanied by Ski Plex and a Costa Drive Thru. other leisure facilities.

The site benefits from a prominent road frontage. A considerable amount of land is available Our client is inviting submissions from prospective development sites, especially within the eastern area of the Park, with further potential to development partners to assist the Council in realising rationalise the existing 1,700 surface parking spaces. To the south there is further open land, the full potential of this excellent opportunity. known locally as Saunders’ Field. This offers another 9 acres (3.6 ha) of potentially developable land although is subject to flooding constraints.

2 BASINGSTOKE LEISURE PARK - CONTEXT

Prepared by Broadway Malyan and adapted by Montagu Evans.

3 LOCATION Basingstoke lies 55 miles west of London. The town lies adjacent to the M3, with access from Junctions 6 and 7. The M3 links with Junction 12 of the M25, only 25 miles away. This provides fast access to both Heathrow (38 miles) and Gatwick Airports. Junction 11 of the M4 is 15 miles away and Southampton is just 32 miles.

Basingstoke Railway Station provides a direct service to London Waterloo in a journey time of 42 minutes and to Reading in just 23 minutes, with the town on both the south-west and a north-south cross-country line. This makes it a strategic location in the south-east of England.

Basingstoke Leisure Park is well connected to the town centre and Milestones Museum the town’s ring road by a dual carriageway. The town centre is home to the successful ‘Festival Place’ and ‘The Malls’ shopping centres.

TRAVEL DESTINATION TRAVEL TIME BY RAIL DISTANCE BY ROAD

Central London 42 mins 55 miles Oxford 45 mins 34 miles Reading 23 mins 18 miles London Heathrow 45 mins 38 miles Southampton 25 mins 32 miles

A shuttle bus connects the Park to the town centre and Basing View – a 65 acre office park currently undergoing a major transformation. Vehicle access to the site is via two good quality entrances off Churchill Way West. Home to Basingstoke Bisons 4 DEMOGRAPHICS CURRENT LEISURE OFFER A catchment population of 1.4m lies within a 40 minute drive time, rising to 4.4m within There are currently 11 occupational tenants. New occupiers are due to take up 60 minutes. Other catchment population facts include: space in the Park this summer: Airkix, Skiplex and Costa (franchisee) who will add an exciting new dimension to the Park’s offer. Bespoke new buildings are being • 38.5% are described as “wealthy achievers”: over 50% above the national average developed to meet their needs. Ad hoc events occur in the Park on the open • Average annual spend on sports equipment is over £87 per person: 30% above the ground. Details of existing tenants are described in the below table. national average • Average annual spend per person on eating out is almost £800: 8% above the OPERATOR USE RENT to BDBC national average.

The 100,000 plus population of Basingstoke is set to grow too, with a target of 748 new Bowling Alley £0 homes to be delivered per annum during 2011-2019. Basingstoke & Deane Swimming Pool & Gym £0 Community Leisure Trust

Ice Rink £0

Restaurant £62,000

Cinema £0

Bingo £49,500

Hotel & Restaurant £0

Loddon Vale Bowls Club Bowls £0

Museum £0

Restaurant / Drive Thru £45,000

Restaurant / Drive Thru £45,000

Café (Coming Soon) £64,000 OWNERSHIP The site is owned freehold by Borough Council. The Council also Leisure (Now Open) £TBC manage the Park through a service charge. Much of the open ground in the east of the site is held on a long lease by County Council (HCC). Two occupiers have expressed a potential willingness to modernise their premises – Odeon Cinema and Gala Bingo. HCC are also willing to consider opportunities for HCC have stated that: the Museum within the Leisure Park. “We are pleased to be working alongside the Borough on this exciting project to bring new investment into the Leisure Park. This project and its strategy has the support of the County The Park offers around 1,700 parking spaces in 8 surface car parks for the use of Council. We look forward to a continued joined up approach in taking this matter forward and all tenants. Additional coach parks and customer car parks serve Milestones, KFC, are fully supportive of the principle of including our leasehold interest in the opportunity.” McDonald’s and the hotel. There is an acknowledged oversupply of parking at the site, and it is poorly configured. BDBC own all car parks and roads. 5 LEISURE PARK STRATEGY & ITS OBJECTIVES POTENTIAL DEVELOPMENT USES The objective of the strategy is to encourage regeneration and reinvestment into the Park, Basingstoke Leisure Park offers scope for a range of new development uses. and the developer is expected to deliver this. The four principles of the strategy are;

1. To seek innovative proposals from parties to create a regional leisure destination within USE COMMENT the Council’s landholdings at the Leisure Park and encourage re-investment within existing facilities. Required to be the key development component of any proposal. Deliverable and ideally innovative leisure uses are 2. To enable the whole of the Leisure Park, to include Saunders Field, to be part of any sought. The Council recognises that trends in leisure uses Leisure regeneration proposal. change quickly and therefore has no preconceived ideas of what will constitute a modern, strong and attractive leisure 3. To secure a development partner to bring forward holistic development on the Park and offer for the Park. offer that party a long term partnership to incentivise them to deliver. Anticipated to form an integral part of a modern leisure Restaurants / Cafés / Bars 4 To control and steer the nature of development through retention of the Park’s development mix for the Park. ownership and through a governance structure to manage the partnership. If included, must be supporting the main leisure use and Retail (A1 uses) be ancillary. Anticipated that retail tenants will sell goods THE DEVELOPER’S ROLE targeted at meeting customers’ leisure needs. The Council is seeking to enter into a long term regeneration partnership and it is envisaged that the partnership will last 15 years, with long leasehold(s) granted to the developer as It is also recognised by the Council that in supporting the financial viability of proposals for development phases are delivered. The Council expects the developer to have the financial the park, schemes could include ancillary supporting and complimentary uses. The scale of standing, experience, capacity and vision to: development should reflect the size of the opportunity available, and the Council’s ambition • Lead in the repositioning of the profile of the Leisure Park. to secure a leisure offer of regional significance. • Carry out pre development activities: securing occupiers, masterplan/design evolution, planning, etc. THE OPPORTUNITY • Undertake a core development role and apply its expertise and resources to The preferred partner will have an exclusivity period to work up a scheme for Phase 1. Phase support this. 1 is not defined in terms of land take. Land uses are anticipated to focus on the preferred • Be proactive in creating development and investment opportunities. uses described above. The developer has the flexibility to determine a deliverable Phase 1. • Bring forward proposals that are deliverable on a phased basis, set against a realistic Once delivered, the developer will have the ability to draw down other land on the site. delivery programme. Basingstoke Leisure Park is expected to be developed out over a number of years through PLANNING phases. Any initial development phase will however be fully expected to include major, new The current policy framework is provided in the National Planning Policy Framework (NPPF) leisure uses. This is a priority in the Council Plan. and the Saved Policies from the adopted BDBC Local Plan (1996 – 2011). A key policy of the Local Plan is Policy C7 which relates to open space. While this policy affords protection to Any proposals for Saunders Field would need to be treated sensitively having full regard open space, it also describes the tests that must be undertaken when proposals come forward to the land’s flood plain status and also be subject to consultation with the EA through the for alternative uses on such sites. In addition to the Saved Policies and the NPPF emerging undertaking of detailed investigations, funded by the prospective developer. The area could development proposals will also need to take into account other local defined standards, such though provide an alternative for land set aside for drainage on the Leisure Park. Its inclusion as those addressing parking. could therefore bring into play more of the Leisure Park site for development. An engineers’ The principle of development at the Park has already been accepted given recent report on this land is included on the dedicated website at www.montagu-evans.co.uk/ development, although it may be necessary to undertake the necessary sequential testing, in basingstokeleisure.com line with the NPPF. FINANCIAL CONSIDERATIONS The emerging local plan identifies the leisure park as being the location for the focus for new The Council currently enjoys an income of over £200,000 from the Park, and will wish to and improved leisure facilities in the borough. maintain and enhance this income if possible. It may also be willing to invest in a new scheme, Further details of the Council’s planning policies can be found at www.basingstoke.gov.uk/ and were this appropriate. The Council recognises that an enhanced financial return for its land will www.montagu-evans.co.uk/basingstokeleisure: a website set up for this opportunity. play a secondary role against the prospect of new investment and re-investment in the Park.

6 MARKETING AND DEVELOPER SELECTION PROCESS To support the marketing process, a dedicated website - www.montagu-evans.co.uk/basingstokeleisure - contains additional supporting information which interested parties may find helpful.

The Council’s marketing stages and indicative developer selection programme are summarised below:

STAGE REQUIREMENTS START END

Provide track record / experience and team 21st 19th 1. A) Track Record and information, outline development concepts, June Sept B) Outline Submissions signed Tendering (Collusion) Certificate and signed Statement of Good Standing. 2013 2013

Shortlisted developers invited to submit designs for site alongside scheme financial information Oct Jan 2. Detailed Submissions and response to Council’s heads of terms and 2013 2014 to negotiate with Council.

Council reporting for authorisation and preferred Jan April 3. Developer Exclusivity developer to work with Council to agree development agreements / legal documents. 2014 2014

4. Development Agreement Implementation of development agreement. - - Opportunities to Modernise We ask that interested parties read the ‘Notes’ section at the end of this brochure in tandem with the described Marketing Process.

Stage 1 is divided into two parts - Stage 1A and Stage 1B. Submissions must pass Stage 1A to progress to Stage 1B. The stages and requirements are described below.

STAGE 1A: TRACK RECORD, EXPERIENCE, TEAM AND FINANCIALS In addition to providing basic details of your company (name of organisation, key contact, address, phone number(s), email address, etc.) and any proposed consortia partners if applicable, interested parties must submit information in response to the following:

1. Annual company accounts for the last audited year or details of where these may be found online.

2. Details of two relevant case studies that your organisation has undertaken in the last 5 years. These must demonstrate your organisation’s ability to provide the services required and its experience of working with public sector partners on the delivery of large, complex long term schemes. In describing case studies, please indicate current project status, scale, value and your organisation’s roles.

3. Details of your key team members and their experience and how you have resourced the delivery of other successful, comparable projects. Where a consortium is proposed, please explain how you have worked together, and the roles and responsibilities that each organisation undertook.

Interested parties must complete, sign and return the Tendering (Collusion) Certificate and Statement of Good Standing. These documents can be found on the Council’s e-procurement tool (ProContract: https://www.businessportal.southeastiep.gov.uk) and at www.montagu-evans.co.uk/basingstokeleisure (see also page 10 ‘Return of Submissions’). Around 1,700 Car Spaces 7 Airkix Now Open

Excellent Road Network Limited A3 - A5 Offer

PRIME DEVELOPMENT OPPORTUNITY

8 STAGE 1A: EVALUATION PROCESS 2. Poor response provided against the objectives of the project. Falls below the Stage 1A will be evaluated in accordance with the methodology in Table 1 below. Council’s expectations. 1. Very poor response provided against the project objectives. Falls significantly TABLE 1 QUESTION short of the Council’s expectations. 0. No response provided or fails to meet the Council’s project objectives. 1. Company Finances The Council shall seek a reference from a properly recognised credit reference agency in order to establish Submissions not passing Stage 1A will be disqualified from the process and Stage whether the Applicant has a satisfactory financial status. 1B (Outline Submissions) will not be evaluated. For questions 2 and 3 a minimum Applicants shall pass the financial status test where such combined score of 50% or more will be the selection threshold. Submissions not reference shows that the Applicant is not in the highest meeting this minimum selection threshold will not be considered further. quartile of business failures.

If the Applicant fails, the Council shall apply the same test STAGE 1B: OUTLINE SUBMISSIONS to the Applicant’s parent company. Provided the parent For the Outline Submissions Stage 1B, interested parties are requested to provide company passes and provides confirmation that it will details on: guarantee the bid, the application shall pass the financial status test. 1. Your overall vision and approach to improving Basingstoke Leisure Park. Where we are unable to obtain a credit reference for an applicant, applicants shall pass the financial status test 2. Initial high level, outline design concepts for the Park, with particular reference where the latest audited accounts show the applicant has to the first phase and sufficient detail to assess the general layout and (i) a positive net worth (ii) an overall profit. proposed uses. An indication of phasing timescales and any key interventions would also be welcome. A ‘Fail’ in this section will mean that submissions are not considered further. 3. Your proposals for encouraging investment in the existing facilities.

2. Track Record 60% of marks. Evaluated against the below 0-5 scoring These requirements are linked to the strategy and objectives for the Leisure Park, (Case Studies) system, with each case study receiving up to 30% of the as outlined above. No information on scheme costs or values is required for this marks. stage, although we anticipate interested parties will in preparing their outline submissions have a broad regard to their likely deliverability. 3. Team and Experience 40% of marks. Evaluated using the below 0-5 scoring system, with the scores allocated against the following: STAGE 1B: EVALUATION PROCESS Stage 1B will be evaluated in accordance with Table 2 below. - Experience of key team members (30%) - How you have resourced the delivery of other successful comparable projects (10%) Table 2

CRITERIA ALLOCATION Please note, the signed Tendering (Collusion) Certificate and signed Statement of Good Standing are also required to be submitted as part of the response to Stage 1A. A. The quality of the overall vision for the Leisure Park. 10%

B. The extent to which the proposals are likely to Questions 2 and 3 will be scored in accordance with the following criteria, with 20% create a stronger leisure destination. weightings applied. C. The quality of the initial phase concept – design, mix 50% 5. Exceptionally good response against the project objectives. Substantially above of uses, layout, sustainability and deliverability of such. the Council’s expectations. D. The approach to scheme phasing. 10% 4. Very good response against the project objectives. Above the Council’s expectations. E. The proposals to encourage investment in existing facilities. 10% 3. Good response against the project objectives. Meets the Council’s expectations.

9 The 0-5 scoring system as per Stage1A will be used to evaluate the responses WEBSITE / DATA ROOM A – E received for Outline Submissions, and then weighted accordingly. The website at www.montagu-evans.co.uk/basingstokeleisure contains information Stage 1B (Outline Submissions) bidding parties will be invited to present their regarding the opportunity. ideas to the Council. The documents included on the website are:

The presentations will feed into the scoring, as follows. Provisional (0-5) scores • Development Brief / Brochure • Guide for using Electronic Procurement Tool for Stage 1B will be capable of being ratcheted by one level depending • Statement of Good Standing • Planning Policy Information / Web Links upon the response of bidders. For example an initial score of “4” (very good) awarded for a criteria could be downgraded to a “3” or increased to a “5” • Tendering (Collusion) Certificate • Engineering Options Report respectively as a result of the presentation. • Tenancy Schedule • Site Topographical Study

The Council has not specified how many parties may be shortlisted for Stage • Site Plans • Utilities / Services Plan 2 – Detailed Submissions, but anticipates that this will be 3 - 5 bidders, based • Report on Title • Site Development Framework on the highest evaluation scores from Stage 1B. • Stage 2 Evaluation Criteria • Cabinet Report FURTHER STAGES RETURN OF SUBMISSIONS Stage 2 – Detailed Submissions During this stage, selected shortlisted parties will be issued with further Submissions for Stage 1A and Stage 1B must be made via the ProContract, supporting information. Shortlisted parties will also be invited to a number of the Council’s electronic procurement tool by 12 noon, Thursday 19th negotiation meetings with the Council. Following this, parties will be required September 2013. Submissions will not be accepted via any other means, to submit more detailed design proposals for the site (layout, uses, floorspace, including post and e-mail. etc.), together with supporting scheme information (tenants/anchors, financial, development programme, deliverability, wider professional team), and ProContract can be found at https://www.businessportal.southeastiep.gov.uk. Broad Existing Appeal responses to draft heads of terms. The Council will then evaluate the Further details of how to use the ProContract System are included in the submissions based on the “Stage 2 Evaluation Criteria”, as found on the website - www.montagu-evans.co.uk/basingstokeleisure. A submission website www.montagu-evans.co.uk/basingstokeleisure and issued to summary checklist is provided below for Stages 1A and 1B: shortlisted parties. Once the evaluation process has concluded, the Council will expect to select its preferred development partner and enter into a Development Agreement. STAGE 1A INCLUDED

At Stage 2 (Detailed Submissions) bidding parties will be invited to present Company Accounts their ideas to the Council, and this will feed into the scoring as per the approach taken in Stage 1B. Track Records / Case Studies

Team and Experience Stage 3 – Developer Exclusivity The Council will grant the preferred development partner a period of time to Signed Statement of Good Standing work up the scheme proposals and firm up the detailed contractual arrangements and legal documents with the Council, leading to the parties Signed Tendering (Collusion) Certificate entering into a development agreement, land transaction or similar.

STAGE 1B Stage 4 – Development Agreement Once the Development Agreement has been entered into, the preferred Outline Submissions developer will work toward clearing conditions and delivering the scheme.

10 Substantial Vacant Ground NOTES

MARKETING PROCEDURES FREEDOM OF INFORMATION The Council is adopting a streamlined marketing process following the In accordance with the obligations and duties placed upon public authorities Negotiated Procedure, as set out in the Public Contracts Regulations 2006. by the Freedom of Information Act 2000 (the ‘FoIA’), all information The award criteria will reflect MEAT (Most Economically Advantageous Tender). submitted to the Council may be disclosed in response to a request made pursuant to this legislation. QUERIES AND REQUESTS FOR CLARIFICATION If the Council considers any question or request for clarification to be In respect of any information submitted by an Applicant that it considers to of material significance, both the question and the response will be be commercially sensitive, the Applicant should: communicated, in a suitably anonymous form to all Applicants who have 1. Clearly identify such information as commercially sensitive; responded or have expressed an interest.

2. Explain the potential implications of disclosure of such information; and CONSORTIA Where a consortium arrangement is being proposed (i.e. two or more 3. Provide an estimate of the period of time during which the Applicant organisations seeking to be selected as a combined team), information believes that such information will remain commercially sensitive. requested should principally be submitted for the proposed consortium leader. Supporting relevant information should also be provided for consortium Where an Applicant identifies information as commercially sensitive, the members who will play a significant role in the delivery of the overall proposal. Council will endeavour to maintain confidentiality. Applicants should note, however, that, even where information is identified as commercially The Council recognises that arrangements in relation to consortia may be sensitive, the Council might be required to disclose such information in subject to future change. Changes in relation to a consortia must be notified to accordance with the FoIA. Accordingly, the Council cannot guarantee that the Council. any information marked ‘commercially sensitive’ will not be disclosed.

PARENT COMPANY GENERALLY If financial information is provided for a Parent Company in response to Stage In the event that none of the responses are deemed satisfactory, the Council 1A, Question 1: Company Finances - it will be expected that a Parent Company reserves the right to terminate the procurement and where appropriate re-advertise the opportunity. The Council is not bound to accept any bids. guarantee or similar will be available from the applicant.

COSTS VERIFICATION OF INFORMATION The Council will not be liable for and will not reimburse any costs, Information provided at Stage 1 may be subject to verification. If any error, expenditure, work or effort incurred by Applicants in participating in this omission, misrepresentation or material change to the Applicant’s situation procurement, including if the procurement is terminated or amended by the is discovered, the Council reserve the right to disqualify the Applicant from Council for whatsoever reason. further participation in the process no matter what stage of the process has been reached.

11 FURTHER INFORMATION If you have any questions about this opportunity, please contact the Council’s advisors, Montagu Evans LLP:

MALCOLM HEWINES SIMON WAUGH T: 020 7866 8624 T: 020 7312 7425 M: 07957 574 239 M: 07818 012 425 [email protected] [email protected]

Messrs Montagu Evans for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- (i) The particulars are set out as a general outline for the guidance of intended purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract. (ii) All descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representation of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. (iii) No person in the employment of Montagu Evans has any authority to make or give any representation or warranty whatsoever in relation to this property. PROPERTY MISDESCRIPTIONS ACT 1991 1. The information contained within these particulars has been checked, and unless otherwise stated, is understood to be materially correct at the date of publication. After these details have been printed, circumstances may change outwith our control. When we are advised of any change we will inform all enquirers at the earliest opportunity. 2. Date of Publication - June 2013 3. Unless otherwise stated, all prices and rents are quoted exclusive of Value Added Tax. Prospective purchasers/lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction.