Friday, 11 March 2011

New Covent Garden Market - Three developers taken forward

Covent Garden Market Authority (CGMA) has today announced the completion of the next stage of its OJEU procurement process to select a private development partner to lead the regeneration of the site and create modern new market facilities for its 200 tenant businesses.

The 57 acre site next to Vauxhall Cross forms a key part of the Nine Elms area and is one of London’s largest development opportunities.

The news follows the launch of the final stage of pre-application community consultation on 3 March, where new images and details of The Garden at New Covent Garden Market were displayed to key stakeholders and the public. An outline planning application covering the entire site will be submitted to Wandsworth Council this Summer.

The Garden will be developed at no expense to the tax payer and will be entirely self financing from CGMA’s land assets, with the potential to generate a gross development value of around £1 billion.

The three developers are:
- Barratt Developments plc & Kier Group plc
- Bouygues UK Ltd
- St. Modwen Properties plc & Vinci plc

Baroness Brenda Dean, Chairman of Covent Garden Market Authority said:

“We were delighted with the calibre of our original shortlist and this interest has been borne out in the high standard of outline solutions which were submitted.

“The three short-listed parties are all committed to this process and able to deliver. It has given us great confidence in the deliverability of the project as a whole and our ability to create modern new facilities for our tenants and their customers whilst also contributing to the wider regeneration of the Nine Elms area.

“This is one of the most exciting development opportunities anywhere in Europe right now and we look forward to engaging further and selecting a preferred partner later in the year.”

Jan Lloyd, Chief Executive of Covent Garden Market Authority said:

“This is a significant milestone for the project and we will now be working through the design and financial details with each bidder, as part of a competitive process to arrive at the right outcome for the Authority.

“Our priority rightly remains the Market itself and with the expertise of those on the short list we are confident we will get a Market we can all be proud of, delivered without any call on Treasury Funds.

“Coming so soon as it does following the start of the final phase of pre-application consultation, our momentum is building as we also work towards the submission of a planning application to Wandsworth Council this Summer.

Nigel Durman, Director of Drivers Jonas Deloitte said:

“The evaluation process has been rigorous as we considered each of the outline solutions against our detailed criteria and the quality of bids submitted has re-enforced the real desire which exists from the development sector to partner with CGMA to deliver this project.”

The competitive partner selection process is being undertaken in accordance with the competitive dialogue procedure under the Public Contracts Regulations 2006. CGMA is being advised on the procurement process by Drivers Jonas Deloitte (Property), Turner & Townsend (Project Manager), KPMG LLP (Financial) and Eversheds LLP (Legal).

For further information, please contact:· Suzi Lawrence, London Communications Agency, 020 7612 8480, · Jonny Popper, London Communications Agency, 020 7612 8480, · Helen Evans, Covent Garden Market Authority, 020 7501 3487,
· Nigel Durman, Drivers Jonas Deloitte, 020 7303 3573,

The current anticipated timetable for the procurement process is:
· March 2011: Short list of developers reduced to enter final stage
· Summer 2011: Final tenders by the shortlisted potential private development partners
· Summer 2011: Planning application to be submitted to London Borough of Wandsworth
· Summer - Winter 2011: Planning application negotiations
· Autumn 2011: Final selection of private development partner
· Winter 2011: Planning application considered at Planning Committee Meeting
· Early / Spring 2012: Planning application decision by London Borough of Wandsworth
· Early/ Spring 2012: Private development partner awarded contract

About The Garden at New Covent Garden Market
· The plans consolidate all market activities onto the main market site, in a phased redevelopment which aims to move tenants only once. By redeveloping – rather than refurbishing the existing 1970’s buildings – a much more efficient site layout can be achieved with more space in the new market than is currently let.
· It will deliver five new buildings for wholesale and catering distributors, alongside a dedicated new flower market building, relocated from its current location at the Northern Site.
· Plans also include a new building, called The Garden Heart as a new Centre for new food and flowers in London. This will be a hub of activity outside of the Market, open to the public and providing a base for a host of facilities such as exhibition space, education facilities, cafes and possibly a public market.
· Four development plots are freed up by these plans with the money raised by CGMA releasing this land to be used to deliver the new market and facilities.
· The largest is the Northern site, 400 yards from Vauxhall Cross, which will include 1,750 new homes arranged around a new park which will also act as the start of the new ‘linear park’ for the area connecting Vauxhall at one end to the Entrance Site and Battersea Power Station at the other, linking with the proposed US Embassy public plaza along the way. Alongside the new homes will also be a hotel, serviced apartments, commercial space, shops including a new supermarket, cafes and restaurants.
· Along Thessaly Road – the South-Western boundary of the Market – there are currently homes on only side of the street, with a large brick wall on the other side. CGMA proposes to move this market boundary further back from the road, removing the current brick wall and building around 200 new apartments built around communal gardens and play spaces.
· At the College site, at the South Eastern end and opposite Lambeth College, around 100 new apartments are proposed arranged in four main blocks with improved pedestrian access from Wandsworth Road.
· At the current entrance to the Market along Nine Elms Lane, a further 450 homes are proposed arranged in three new buildings ranging from 9 - 11 storeys, including one new landmark 19 storey building to act as a marker for the site opposite Battersea Power Station. These would also be located at the Western end of the new linear park.

About New Covent Garden Market
· New Covent Garden Market is the largest fresh produce market in the UK. It plays a vital role in supplying London’s hospitality and food service sectors with fresh fruit, vegetables and flowers.
· New Covent Garden Market annual turnover is some £584 million, broken down as follows between the different trading areas:
- £154 million fruit & vegetable wholesale
- £183 million food service & wholesale distribution
- £47 million flower wholesale
- £80 million other food related activity
- £120 million (estimated) importer, agents and other services
· Over 350 varieties of fruit and vegetables are sold along with flowers and foliage from around the world.
· Its customers include leading chefs, restaurants and hotels in London and throughout the UK.
· Over 2,500 people are employed across 200 companies and the central location provides ready access to the West End, City and all parts of the Capital.
· New Covent Garden Market has over 800 years of history and has been located at Vauxhall since 1974.

About Covent Garden Market Authority (CGMA)· CGMA is a statutory corporation responsible for running New Covent Garden Market and made.
· CGMA is responsible to Defra for the ownership and operation of New Covent Garden Market.

About the redevelopment project
· Launched in September 2006 by former Food & Farming Minister Jeff Rooker, the redevelopment of New Covent Garden Market is being led by CGMA with full Defra and Government support.
· Initial tenant consultation and design conception took place to establish a base case model for the Market. This was tested in summer 2007 and established as financially and functionally viable.
· CGMA recognised that private sector involvement will be needed to develop the new market and secure maximum value from any surrounding development.
· In October 2008 Government approved the business case for the redevelopment allowing CGMA to proceed with more detailed work that will lead to the selection of a private development partner.
· This procurement process, which is being conducted via the OJEU process, began in March 2010 and will provide one of the largest development opportunities in London. It will be complete later this year with the selection of a preferred partner.
· The Garden is located within the Vauxhall / Nine Elms / Battersea Opportunity Area (VNEBOA), identified in the London Plan as an area of potential growth and regeneration.
· The planning framework for the VNEBOA area specifically supports the delivery of a new market as well as homes, jobs and open spaces. This document was published for consultation in November 2009 and it is anticipated that the final version of the OAPF will be published later this spring.