SME HOUSING FUND – PROCUREMENT OF A FUND MANAGER

1. Title: SME HOUSING FUND – PROCUREMENT OF A FUND MANAGER2. Awarding Authority: Cardiff Council, Blaenau Gwent County Borough Council, Bridgend County Borough Council, Caerphilly County Borough Council, Merthyr Tydfil County Borough Council, County Hall, Atlantic Wharf, Cardiff, GB, CF10 4UW. Tel: 02920873732. Email: procurement@cardiff.gov.uk.3. Contract type: Service contractCompetitive procedure with negotiation4. Description: The Awarding Authority is seeking to procure a FCA accredited fund manager / advisor on behalf of Cardiff Capital Region (CCR) to provide certain services and to manage the capital allocated under a 10 million GBP housing investment fund for the benefit of SME developers (developers with less than 250 employees) operating in the South East Wales region.Cardiff Capital Region City Deal is a 1.1bn GBP economic growth programme which was agreed in 2016 between UK Government, Welsh Government and ten local authorities in South East Wales (the “Region”) to bring about significant economic growth in the Region through investment, upskilling, and improved physical and digital connectivity.The CCR local authorities are: Blaenau Gwent, Bridgend, Caerphilly, Cardiff Council, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen and Vale of Glamorgan.Work undertaken to date has demonstrated to CCR that a key challenge in the Region’s housing market is the requirement for vital financing support for SME developers with less than 250 employees and turnover under 50 million EURO (“SMEs”) that play a valuable role in local house-building for relatively small housing schemes that fall outside of the mainstream developers’ line of sight.To address this, CCR is seeking to establish an initial 10 million GBP investment sub-fund to target the substantial number of SME controlled smaller sites in the Region and provide finance support to SME developers who are unable to proceed with developments due to a lack of available funding support, particularly for the required upfront costs in the delivery cycle (the “Fund”). The term of the Fund is anticipated to be 11 years (approximately 1 year bedding in period and 10 years of investment), with the possibility of an extension by CCR for further period(s) of up to 10 years. CCR reserves the right to increase value of its investment in the Fund over this period. The principal objectives of the Fund, investment products, investment criteria, eligibility criteria and target outputs are set out in the Investment Strategy which has been issued alongside this Contract Notice.CCR is seeking to commission an FCA accredited fund manager / adviser to, amongst other matters, help market the Fund, source a pipeline of projects, undertake due diligence on applicants and manage the capital allocated under the Fund on CCR’s behalf. It is intended that CCR will hold the 10 million GBP which will be loaned directly by CCR to successful applicants upon the Fund Manager’s formal recommendation and that a successful applicant will make repayments on the loan to CCR directly. As CCR is not itself a corporate vehicle, Cardiff Council shall hold and manage the allocated 10 million investment; and procure and enter into a services contract for fund management services in respect of the Fund on behalf of CCR. CCR anticipates that the duration of the fund manager’s services contract will align with the duration of the Fund.It is anticipated the fund manager/adviser shall perform loan origination and servicing services alongside general services and reporting services which shall include (amongst other matters): (a) advice upon and finalisation of the Investment Strategy for the Fund; (b) marketing, promoting and securing a pipeline of suitable applicants; (c) reviewing applications and conducting due diligence on a applicant’s suitability for the Fund; (d) making recommendations to CCR’s investment board in respect of suitable applicants; (e) ongoing monitoring, scrutiny and management of investments made and any potential or actual risks arising and how these may be managed; and (f) fulfilling the role of a FCA accredited fund manager for the Fund. The Fund Manager should also have direct access to third party advisers (in-house or otherwise) (such as valuers and professional advisers) in order to provide the full scope of services on behalf of CCR. The full scope of services is set out in Fund Manager Services Contract which has been issued alongside this Contract Notice.CCR is now inviting suitably qualified organisations to submit a response to the standard selection questionnaire (SQ) for this contract opportunity. Details of where to obtain the SQ and other documentation being released at this stage can be found in Section I of this contract notice5. CPV Code(s): 66000000, 66100000, 661400006. NUTS code(s): UKL, UKL2, UKL22, UKL16, UKL17, UKL21, UKL157. Main site or location of works, main place of delivery or main place of performance: Place of performance WALES8. Reference attributed by awarding authority: Publication reference: 2021/S 000-003349ERFX 1007376Notice number: 2020/S 103-249508WA Ref:1083699. Estimated value of requirement: Value excluding VAT: £2,500,00010. Time limit for receipt of projects or requests to participate 22.3.2021 (12:00).11. Address to which they must be sent: For further information on the above contract please visit Web: origin=SearchResults&p=112. Other information: CommunicationThe procurement documents are available for unrestricted and full direct access, free of charge, atAdditional information can be obtained from the above-mentioned addressTenders or requests to participate must be submitted electronically via Type of the contracting authorityRegional or local authorityMain activityGeneral public servicesThis contract is divided into lots: NoAward criteriaPrice is not the only award criterion and all criteria are stated only in the procurement documentsDuration of the contract, frame agreement or dynamic purchasing systemDuration in months252This contract is subject to renewalNoInformation about the limits on the number of candidates to be invitedEnvisaged number of candidates: 3 Information about variantsVariants will be accepted: NoInformation about optionsOptions: YesDescription of optionsSee section 11.2.7 for details Additional informationPlease note the estimated value at is based on the maximum 21 year duration of services.CCR previously engaged with potential suppliers via a soft market testing exercise to discuss this opportunity (see OJEU PIN reference 2020/S 103-249508). The responses confirmed that the Fund was viable, there is a need for the Fund, and the market would be interested in the opportunityEconomic and financial standingSelection criteria as stated in the procurement documents Technical and professional abilitySelection criteria as stated in the procurement documents Conditions related to the contract Information about a particular professionExecution of the service is reserved to a particular professionReference to the relevant law, regulation or administrative provisionProvider must be FCA registeredContract performance conditionsPlease refer to the contract, the form of which is made available from the address at 1.3 and the terms of the ISIT.Information about the Government Procurement Agreement (GPA)The procurement is covered by the Government Procurement Agreement: YesInformation about recurrenceThis is a recurrent procurement: NoAdditional informationTo register your interest in this notice and obtain any additional information please visit ERFX1007376CCR is conducting this procurement using the Competitive Procedure with Negotiation. Following assessment of SQ submissions, 3 candidates will be invited to submit an initial tender. Please see the SQ for further details. CCR then intends to conduct a focussed and effective negotiation stage with the aim of enabling tenderers to submit a final tender that meets CCR’s requirements. The Draft Invitation to Submit Initial Tender (ISIT) is being issued with the Contract Notice for information only and contains additional information on the anticipated procurement process and draft contract terms.Candidates are solely responsible for their costs and expenses incurred in connection with this procurement. Under no circumstances (including circumstances where CCR cancels or varies the procurement) will CCR or Cardiff Council or any of its advisers be liable for any costs or expenses borne or incurred by the candidates or their advisers.NOTE: To register your interest in this notice and obtain any additional information please visit the Sell2Wales Web Site at ID=108369.Under the terms of this contract the successful supplier(s) will be required to deliver Community Benefits in support of the authority’s economic and social objectives. Accordingly, contract performance conditions may relate in particular to social and environmental considerations. The Community Benefits included in this contract are:See tender pack(WA Ref:108369)The buyer considers that this contract is suitable for consortia.TKR-2021219-EX-1560228# funding opportunity