Appointment of Pension Fund Manager – Real Estate Debt

Appointment of Pension Fund Manager – Real Estate Debt

Glasgow City Council, as administering authority to the Strathclyde Pension Fund, is seeking to appoint an investment manager, or managers, to manage a real estate debt mandate.

United Kingdom-Glasgow: Pension fund management services

2018/S 246-564431

Contract notice

Services

Legal Basis:

Directive 2014/24/EU

Section I: Contracting authority

I.1)Name and addresses

Glasgow City Council as the administering authority for the Strathclyde Pension Fund
Strathclyde Pension Fund Office, PO Box 27001
Glasgow
G2 9EW
United Kingdom
Contact person: Richard Keery
Telephone: +44 1412877398
E-mail: richard.keery@fs.glasgow.gov.uk
Fax: +44 1412877358
NUTS code: UKM82

Internet address(es):Main address: www.spfo.org.ukuk

Address of the buyer profile: https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA13562

I.2)Information about joint procurement

The contract is awarded by a central purchasing body

I.3)Communication

The procurement documents are available for unrestricted and full direct access, free of charge, at: https://Strathclyde2018REDebtSearch@hymans.co.uk
Additional information can be obtained from another address:
Hymans Robertson LLP
20 Waterloo Street
Glasgow
G2 6DB
United Kingdom
Contact person: Claire Cairney
Telephone: +44 1415667746
E-mail: Strathclyde2018REDebtSearch@hymans.co.uk
NUTS code: UKM82

Internet address(es):Main address: www.hymans.co.uk

Tenders or requests to participate must be submitted electronically via: https://Strathclyde2018REDebtSearch@hymans.co.uk

I.4)Type of the contracting authority

Regional or local authority

I.5)Main activity

Economic and financial affairs

Section II: Object

II.1)Scope of the procurement

II.1.1)Title:

Appointment of Pension Fund Manager – Real Estate Debt

II.1.2)Main CPV code

66141000

II.1.3)Type of contract

Services

II.1.4)Short description:

Glasgow City Council, as administering authority to the Strathclyde Pension Fund, is seeking to appoint an investment manager, or managers, to manage a real estate debt mandate. Managers and proposed mandates will need to be able to comply with LGPS regulations. A segregated solution may be considered however, the manager must also have an appropriate pooled fund or funds for consideration

II.1.5)Estimated total value

II.1.6)Information about lots

This contract is divided into lots: no
II.2)Description
II.2.1)Title:
II.2.2)Additional CPV code(s)

II.2.3)Place of performance

NUTS code: UKM82
Main site or place of performance:

Strathclyde

II.2.4)Description of the procurement:

Glasgow City Council, as administering authority to the Strathclyde Pension Fund is seeking to appoint an investment manager to manage a real estate debt mandate. Managers and proposed mandates will need to be able to comply with LGPS regulations. A segregated solution may be considered however, the manager must also have an appropriate pooled fund or funds for consideration. The mandate will be focussed on a combination senior secured direct and whole loans, lending against commercial real estate in the UK and/or Europe. The overall portfolio would be viewed as equivalent to sub-investment grade credit risk. The strategy will primarily include senior debt on value-add properties and also can include whole loans on good quality assets, with potential for limited opportunistic allocations to mezzanine/junior debt. The expected returns on the mandate would be in the region of LIBOR plus 4-5 % p.a. net of fees and costs.

The mandate size will range between 200 000 000 GBP and 500 000 000 GBP depending on how it combines with other debt mandates. Glasgow City Council reserves the right to alter the value and coverage of the mandate both initially and over the period of the mandate.

II.2.5)Award criteria

Criteria below
Quality criterion – Name: People / Weighting: 10
Quality criterion – Name: Philosophy / Weighting: 10
Quality criterion – Name: Process / Weighting: 10
Quality criterion – Name: Corporate Capability / Weighting: 10
Quality criterion – Name: Fair Work Practices / Weighting: 5
Quality criterion – Name: Sustainability / Weighting: 5
Quality criterion – Name: Suitability – Interview / Weighting: 10
Quality criterion – Name: Likelihood of success – Interview / Weighting: 10
Quality criterion – Name: Added Value – Interview / Weighting: 10
Price – Weighting: 20
II.2.6)Estimated value

II.2.7)Duration of the contract, framework agreement or dynamic purchasing system

Duration in months: 60
This contract is subject to renewal: yes
Description of renewals:

The contract will commence on the Commencement Date as detailed in the Investment Management Agreement (“IMA”) and shall continue in full force and effect until terminated in accordance with the terms of the IMA. Please refer to Clauses 25 and 26 of the IMA for full details.

II.2.10)Information about variants

Variants will be accepted: no

II.2.11)Information about options

Options: no
II.2.12)Information about electronic catalogues

II.2.13)Information about European Union funds

The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information

Section III: Legal, economic, financial and technical information

III.1)Conditions for participation

III.1.1)Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers

List and brief description of conditions:

Please refer to Section 3 – Exclusion – of the ESPD in relation to this section.

III.1.2)Economic and financial standing

List and brief description of selection criteria:

Please provide details of your firm’s assets as at 31 December for each of the last 5 years. Details should include Total Group assets under management, Total Assets managed on behalf of UK Pension Funds and Total Real Estate Debt Assets (i.e. commitments to you). All details should be shown in GBPm.

Minimum level(s) of standards possibly required:

The Manager shall at its own cost effect and maintain the following insurances with a reputable insurance company:-

Employer’s Liability Insurance in the sum of not less than 10 000 000 GBP for any one incident and unlimited in total;

Public liability insurance in the sum of not less than 5 000 000 GBP for any one incident and unlimited in total; and

In relation to the management of the Portfolio, Professional Indemnity cover to not less than 20 000 000 GBP for any one event and unlimited in the total.

The Manager’s Professional Indemnity cover shall include cover against losses resulting from a breach of GDPR by the Manager and fines and penalties issued by the Information Commissioner.

Such insurance shall be maintained for the Term and for a minimum of 3 years thereafter.

The Manager’s Professional Indemnity cover shall include cover against losses resulting from a breach of GDPR by the Manager and fines and penalties issued by the Information Commissioner.

The Manager shall give the Client, on an annual basis, copies of all insurance policies referred to in this Clause or a broker’s verification of insurance to demonstrate that the appropriate cover is in place, together with receipts or other evidence of payment of the latest premiums due under those policies.

If, for whatever reason, the Manager fails to give effect to and maintain the insurances required by the provisions of the Agreement the Client may make alternative arrangements to protect its interests and may recover the costs of such arrangements from the Manager.

The provisions of any insurance or the amount of cover shall not relieve the Manager of any liabilities under the Agreement.

This Clause shall survive termination of this Agreement.

III.1.3)Technical and professional ability

List and brief description of selection criteria:

Please refer to Question 4C.1/4C1.2 to find details of the Technical, Professional and Capability criteria required for this mandate.

III.1.5)Information about reserved contracts
III.2)Conditions related to the contract
III.2.1)Information about a particular profession
III.2.2)Contract performance conditions:
III.2.3)Information about staff responsible for the performance of the contract

Section IV: Procedure

IV.1)Description

IV.1.1)Type of procedure

Open procedure
IV.1.3)Information about a framework agreement or a dynamic purchasing system
IV.1.4)Information about reduction of the number of solutions or tenders during negotiation or dialogue
IV.1.6)Information about electronic auction

IV.1.8)Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: yes
IV.2)Administrative information
IV.2.1)Previous publication concerning this procedure

IV.2.2)Time limit for receipt of tenders or requests to participate

Date: 17/01/2019
Local time: 12:00
IV.2.3)Estimated date of dispatch of invitations to tender or to participate to selected candidates

IV.2.4)Languages in which tenders or requests to participate may be submitted:

English
IV.2.6)Minimum time frame during which the tenderer must maintain the tender

IV.2.7)Conditions for opening of tenders

Date: 17/01/2019
Local time: 12:00

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: no
VI.2)Information about electronic workflows

VI.3)Additional information:

NOTE: To register your interest in this notice and obtain any additional information please visit the Public Contracts Scotland Web Site at https://www.publiccontractsscotland.gov.uk/Search/Search_Switch.aspx?ID=567322.

The Contracting Authority does not intend to include a sub-contract clause as part of community benefits (as per Section 25 of the Procurement Reform (Scotland) Act 2014) in this contract for the following reason:

Not applicable.

The Contracting Authority does not intend to include any community benefit requirements in this contract for the following reason:

Community Benefits do not apply to the services being provided.

(SC Ref:567322)

VI.4)Procedures for review

VI.4.1)Review body

Glasgow City Council
Glasgow
G2 9EW
United KingdomInternet address: www.spfo.org.uk
VI.4.2)Body responsible for mediation procedures

VI.4.3)Review procedure

Precise information on deadline(s) for review procedures:

Glasgow City Council (“the Council”) must, by notice in writing as soon as possible after the decision has been made, inform all tenderers and candidates concerned of its decision to award the contract, conclude the framework agreement or establish a dynamic purchasing system. The Council must allow a period of at least the relevant standstill period (where the notice is sent by facsimile or electronic means the period is 10 days ending at midnight at the end of the 10th day after that on which the notice was last sent, when sent by other means the period is 15 days) to elapse between the date of despatch of the notice referred to in Regulation 85(1) of the Public Contracts (Scotland) Regulations 2015 (“the Regulations”). The Council is obliged to comply with the Regulations and any eligible economic operator can bring an action in the Sheriff Court or the Court of Session where as a consequence of a breach by the Council, suffers or risks suffering loss or damage. The bringing of court proceedings during the standstill period means that the Council must not enter into the contract, conclude the framework agreement or establish the dynamic purchasing system unless the proceedings are determined, discontinued or disposed of; or the court, by interim order, brings to en end the prohibition. The bringing of court proceedings after the standstill period has elapsed and the remedies that are available tot he courts are detailed in the Regulations. Economic Operators can write to the Council seeking further clarification on the Notice, to which the Council must respond within 15 days. Economic Operators should be mindful to seek their own independent legal advice when they consider appropriate to do so.

VI.4.4)Service from which information about the review procedure may be obtained

VI.5)Date of dispatch of this notice:

18/12/2018

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