Meadows Phase 2B/ 2C Student Accommodation Project

Description

In 2012, the University sought partners to establish a long term partnership to facilitate the design, build, finance and maintenance of 648 new bedrooms of student accommodation within the University of Essex Knowledge Gateway site ready for the start of the 2013/2014 academic year, together with the potential leasehold sale of an established residential development comprising 767 bedrooms (the "Phase 1" project). ULiving Consortium were identified as the successful tenderer, and subsequently entered into the contract (via a special purpose vehicle called ULiving@Essex Limited) to provide the required services with the University. In line with market norms, the Phase 1 project documentation contained a Restrictive Covenant which restricted the University's ability to provide additional student accommodation unless certain student to bed ratio and occupancy track record tests were met. Contracts relating to a second phase of residences ("Phase 2A") were entered into with the ULiving Consortium (via a special purpose vehicle called ULiving@Essex2 Limited) pursuant to a Voluntary ex Ante Transparency Notice (published 23 May 2015), delivering 643 bedrooms (on a design, build, finance and maintenance basis) adjacent to Phase 1. The VEAT Notice was used as the contractual Restrictive Covenant tests on Phase 1 had not been satisfied. Again, in line with market norms, the Phase 2A project documentation contained a Restrictive Covenant which restricted the University's ability to provide additional student accommodation unless certain student to bed ratio and occupancy track record tests were met. The tests for Phase 1 and Phase 2A are set out in VI.3. Phase 2B/2C is the third phase of the residences development and the University wishes to contract for the provision of a further 1,262 units of student residential accommodation on a design, build, finance and operate basis. The ULiving Consortium will (through the use of a special purpose vehicle called ULiving@Essex3 LLP) operate the residences for c 50 years following completion of construction. The sites are located at the University's Colchester Campus. Planning documentation providing further detail can be found here - https://www.colchester.gov.uk/planning-app-details/?id=e2fc087d-84bee911- a976-000d3ab42b3b#ValidationSummaryEntityFormView. The Restrictive Covenant tests under the Phase 1 and Phase 2A documentation have not been satisfied at the time of publication of this notice, meaning that the ULiving Consortium has exclusive rights to deliver Phases 2B and 2C at present and for at least the next 3 years (September 2024 being the earliest point at which the tests can now be met) as the ULiving Consortium (via ULiving@Essex Limited and ULiving@Essex2 Limited) will only consent to the development taking place if the ULiving Consortium (via ULiving@Essex3 LLP) also delivers Phases 2B and 2C.