HAR6174: Riverside Poplar Phase 2
London Borough of Tower Hamlets · London
Key facts
- Contract value
- £47,840,000
- Awarded
- 27 Feb 2026
- Contract starts
- 27 Feb 2026
- Contract ends
- 31 Mar 2030
- Procedure
- Direct award
- Buyer type
- Local government
- Source
- Find a Tender
Awarded to
| Supplier | Value |
|---|---|
| St Williams Homes LLP | £47,840,000 |
Description
The London Borough of Tower Hamlets (the Council) has identified an opportunity to acquire 223 affordable housing units at Blocks A and B at Heron Wharf, Poplar Riverside, Leven Road (the Site). The Site is currently owned by St William Homes LLP (SWH), a subsidiary of Berkeley Homes (BH). SWH is developing residential housing as part of Phase 2 of the Heron Wharf scheme (the Scheme). The planning permission and associated s106 agreement obtained for the Scheme requires SWH to sell the affordable flats to be delivered, to a Registered Provider, which in this case would be the Council. As part of the Scheme, the Council has agreed to acquire 223 affordable units as set out below. When the construction of the units reaches "golden brick" stage (above foundation level - being the point at which the units are treated as a zero-rated supply for VAT purposes) the Council will purchase the land interest from SWH (so the Council becomes the owner of the land on which the 223 affordable units are to be delivered). The Council will also, at the same time pay SWH the costs associated with the delivery of the works up to "golden brick". The Council will also enter into a Development Agreement with SWH for the delivery of the 223 affordable housing units. The Development Agreement will place a legally enforceable obligation on SWH to commence and deliver housing on the Site in accordance with agreed specification requirements as set out in the Development Agreement. The Council will pay for the costs of the works associated with delivering the affordable housing units in monthly instalments. The completed outputs will then be handed over to the Council's ownership on practical completion. The opportunity offered to the Council by SWH comprises two linked transactions: (i) the purchase of the Site and "golden brick" works that the 223 affordable housing units are to be delivered on by the Council from SWH; and (ii) the award of a works contract (Development Agreement) by the Council to SWH. The Council considers these to be inseparable components of the transaction which can only be delivered by SWH. For the reasons set out in this notice, the Council considers that only SWH would be able to deliver the works because of exclusive rights (SWH's current ownership of the Site) and that there are no reasonable alternatives to these works. The value stated refers to the estimated capital costs of the works which will be the subject of the Development Agreement.
Categories (CPV)
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