Procurement of a Fund Manager – Market Engagement

Procurement of a Fund Manager – Market Engagement

Cardiff Council wants to understand the market’s appetite to participate in a procurement process for the opportunity and its ability to mobilise and commit resources to participate in such process.

United Kingdom-Cardiff: Financial consultancy services

2020/S 103-249508

Prior information notice

This notice is for prior information only

Services

Legal Basis:

Directive 2014/24/EU

Section I: Contracting authority

I.1)Name and addresses

Official name: Cardiff Council
Postal address: County Hall, Atlantic Wharf
Town: Cardiff
NUTS code: UKL22 Cardiff and Vale of Glamorgan
Postal code: CF10 4UW
Country: United Kingdom
E-mail: lucywilliams@cardiff.gov.uk
Telephone: +44 7967793358
Internet address(es):Main address: www.cardiff.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0422

I.1)Name and addresses

Official name: Blaenau Gwent County Borough Council
Postal address: Municipal Offices, Civic Centre
Town: Ebbw Vale
NUTS code: UKL16 Gwent Valleys
Postal code: NP23 6XB
Country: United Kingdom
E-mail: lucywilliams@cardiff.gov.uk

I.1)Name and addresses

Official name: Bridgend County Borough Council
Postal address: Procurement Unit, Civic Offices, Angel Street
Town: Bridgend
NUTS code: UKL17 Bridgend and Neath Port Talbot
Postal code: CF31 4WB
Country: United Kingdom
E-mail: lucywilliams@cardiff.gov.uk
Internet address(es):Main address: www.bridgend.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0417

I.1)Name and addresses

Official name: Caerphilly County Borough Council
Postal address: Penallta House, Tredomen Park, Ystrad Mynach
Town: Hengoed
NUTS code: UKL16 Gwent Valleys
Postal code: CF82 7PG
Country: United Kingdom
E-mail: lucywilliams@cardiff.gov.uk
Fax: +44 1443863167
Internet address(es):Main address: www.caerphilly.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0272

I.1)Name and addresses

Official name: Merthyr Tydfil County Borough Council
Postal address: Unit 5, Triangle Business Park, Pentrebach
Town: Merthyr Tydfil
NUTS code: UKL15 Central Valleys
Postal code: CF48 4TQ
Country: United Kingdom
E-mail: lucywilliams@cardiff.gov.uk
Internet address(es):Main address: http://www.merthyr.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0347

I.1)Name and addresses

Official name: Monmouthshire County Council
Postal address: PO Box 106
Town: Caldicot
NUTS code: UKL21 Monmouthshire and Newport
Postal code: NP26 9AN
Country: United Kingdom
E-mail: lucywilliams@cardiff.gov.uk

I.1)Name and addresses

Official name: Newport City Council
Postal address: Civic Centre
Town: Newport
NUTS code: UKL21 Monmouthshire and Newport
Postal code: NP20 4UR
Country: United Kingdom
E-mail: lucywilliams@cardiff.gov.uk
Internet address(es):Main address: www.newport.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0273

I.1)Name and addresses

Official name: Rhondda Cynon Taf CBC
Postal address: The Pavilions, Clydach Vale
Town: Tonypandy
NUTS code: UKL15 Central Valleys
Postal code: CF40 2XX
Country: United Kingdom
E-mail: lucywilliams@cardiff.gov.uk
Internet address(es):Main address: http://www.rctcbc.gov.uk/

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0276

I.1)Name and addresses

Official name: Torfaen County Borough Council
Postal address: Civic Centre, Pontypool
Town: Torfaen
NUTS code: UKL16 Gwent Valleys
Postal code: NP4 6YB
Country: United Kingdom
E-mail: lucywilliams@cardiff.gov.uk
Internet address(es):Main address: www.torfaen.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0498

I.1)Name and addresses

Official name: Vale of Glamorgan Council
Postal address: Civic Offices, Holton Road
Town: Barry
NUTS code: UKL22 Cardiff and Vale of Glamorgan
Postal code: CF63 4RU
Country: United Kingdom
E-mail: lucywilliams@cardiff.gov.uk

I.2)Information about joint procurement

The contract involves joint procurement

I.3)Communication

Additional information can be obtained from the abovementioned address
Electronic communication requires the use of tools and devices that are not generally available. Unrestricted and full direct access to these tools and devices is possible, free of charge, at: https://supplierlive.proactisp2p.com

I.4)Type of the contracting authority

Regional or local authority

I.5)Main activity

General public services

Section II: Object

II.1)Scope of the procurement

II.1.1)Title:

SME Housing Fund – Procurement of a Fund Manager

Reference number: ERFX1006830

II.1.2)Main CPV code

66171000 Financial consultancy services

II.1.3)Type of contract

Services

II.1.4)Short description:

Cardiff Capital Region (CCR) is looking to establish a 10 million GBP housing investment fund for the benefit of SME developers (developers operating in the order of c.100 units) in the South East Wales region (the Fund). Cardiff Council is seeking to procure a FCA accredited fund manager/advisor on behalf of CCR to provide certain services and to manage the capital allocated under the Fund (the Opportunity).

The purpose of this PIN is to obtain market feedback on Cardiff Council’s proposals for the opportunity and the procurement strategy. In particular, Cardiff Council wants to understand the market’s appetite to participate in a procurement process for the opportunity and its ability to mobilise and commit resources to participate in such process.

CCR has issued a market engagement briefing paper alongside this PIN which outlines the fund and the opportunity and a number of key questions on which CCR would like written feedback from the market by no later than 17.00 on 8 July 2020.

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)

66100000 Banking and investment services
66120000 Investment banking services and related services
66122000 Corporate finance and venture capital services
66110000 Banking services
66113000 Credit granting services
66190000 Loan brokerage services
66140000 Portfolio management services
66170000 Financial consultancy, financial transaction processing and clearing-house services
79412000 Financial management consultancy services

II.2.3)Place of performance

NUTS code: UK UNITED KINGDOM
NUTS code: UKL WALES
NUTS code: UKL22 Cardiff and Vale of Glamorgan
Main site or place of performance:

Wales

II.2.4)Description of the procurement:

Cardiff Capital Region (CCR) City Deal is a 1.1 bn 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 smaller and medium sized developers (developers who are operating in the order of c.100 units or less) (‘SME’) 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 a 10 million 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 ‘SME Housing Fund’). Further details of the SME Housing Fund are included in the market engagement briefing paper issued alongside this PIN.

CCR is seeking to commission an FCA accredited fund manager/adviser to, amongst other matters, help market the SME Housing Fund, source a pipeline of projects, undertake due diligence on applicants and manage the capital allocated under the SME Housing Fund on CCR’s behalf. As CCR is not itself a corporate vehicle, it anticipates that Cardiff Council shall procure and enter into a services contract for fund management services in respect of the SME Housing Fund on behalf of CCR (the ‘Opportunity’). The duration of the services contract is to be determined.

It is anticipated the fund manager/adviser shall perform the following services:

(a) advice upon and finalisation of the investment criteria and strategy for the SME Housing Fund;

(b) market and promote the SME Housing Fund to suitable prospective applicants;

(c) secure a pipeline of applicants for the SME Housing Fund;

(d) review applications received for the SME Housing Fund, conduct due diligence on a applicant’s suitability for and alignment to the SME Housing Fund based on the investment criteria/strategy set;

(e) make recommendations to CCR’s investment board in respect of suitable applicants to the SME Housing Fund;

(f) ongoing monitoring, scrutiny and management of investment products provided to successful applicants under the SME Housing Fund;

(g) advising CCR’s investment board in respect of any potential or actual risks arising in respect of certain investments made under the SME Housing Fund and how these may be best managed/mitigated; and

(h) fulfil the role of a FCA accredited fund manager in respect of the SME Housing Fund.

Cardiff Council envisages the procurement process for the Opportunity will be a restrictive procedure.

Cardiff Council has issued this PIN and the market engagement briefing paper for the purposes of gaining feedback from the market in relation to the SME Housing Fund and Cardiff Council’s proposals for the opportunity and procurement strategy. This is an exercise of genuine information gathering and CCR/Cardiff Council intends to reflect on any feedback given by the market with a view to refining or recalibrating CCR’s/Cardiff Council’s proposed approach ahead of launch of the procurement process.

Cardiff Council would therefore be grateful if prospective tenderers for the Project could review the market engagement briefing paper and provide feedback in writing to Cardiff Council by no later than 17.00 on 8 July 2020 via the Proactis procurement portal available at https://supplierlive.proactisp2p.com using RFX reference ERFX1006830.

II.2.14)Additional information

II.3)Estimated date of publication of contract notice:

02/10/2020

Section IV: Procedure

IV.1)Description

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

The procurement is covered by the Government Procurement Agreement: yes

Section VI: Complementary information

VI.3)Additional information:

Note: to register your interest in this notice and obtain any additional information please visit the Sell2Wales Web Site at https://www.sell2wales.gov.wales/Search/Search_Switch.aspx?ID=101929

(WA Ref:101929)

VI.5)Date of dispatch of this notice:

27/05/2020