CONTRACT SIGNED FOR NEW HOME OFFICE/PRISON SERVICE HQ

26 Mar 2002 03:43 PM

The Home Secretary, David Blunkett announced today, in answer to a written Parliamentary Question, that the Home Office has signed a contract with Annes Gate Property (AGP) plc to build and run a new London headquarters building for both the Home Office and the Prison Service.

The contract is a public private partnership deal and will last for around 29 years at a net cost of approximately £311m at current prices.

The new building will be at 2 Marsham Street on the site of the former offices of the Department of the Environment. The present Marsham Street tower blocks will be demolished as soon as possible. The site at Marsham Street was handed over today to AGP.

When the new building is complete, expected on current plans to be in Spring 2005, the Home Office and Prison Service expect to vacate buildings which they currently occupy in Central London. The new HQ building has been designed by the internationally renowned architect, Sir Terry Farrell. Westminster City Council has granted detailed planning consent for the development. The site will also contain some affordable housing and retail development.

John Gieve, Permanent Secretary at the Home Office, said today:

"The new headquarters provides a long-term solution to my Department's long-term accommodation needs. Modern office accommodation will help us do our business better. In partnership with the private sector, the project to create new offices at Marsham Street will give much better value for money than any of the alternatives open to us, especially as a new Government occupier plans to refurbish and re- occupy the existing main Home Office building at 50 Queen Anne's Gate. With the early demolition of the present Marsham Street tower blocks, the project will also remove a blot on the London landscape."

Olivier-Marie Racine, Managing Director of Bouygues UK, part of the Annes Gate consortium, said:

"We have worked closely with the Home Office since our appointment as preferred bidder to develop the scheme for Marsham Street. We are delighted that we have been confirmed as the Home Office's partner to take this important project forward."

Notes for Editors

1. The award of the contract was announced by Home Secretary, David Blunkett, in a written answer to a Parliamentary Question from Lindsay Hoyle (Lab, Chorley).

2. The Home Office announced the selection of Annes Gate Property as the Preferred Bidder for the project on 28 July 2000. Home Office News Release 234/2000 refers.

3. Annes Gate Property plc (AGP) is a special purpose vehicle established to deliver the Home Office Central London Accommodation project.

4. The Department will be transferring its lease of Queen Anne's Gate to the Lord Chancellor's Department for refurbishment after the move to Marsham Street is completed. The Home Office currently plans to vacate five Government offices in Millbank and Victoria.

5. LCD has issued a separate press release.

6. The procurement competition has been managed by an internal Home Office/Prison Service Team assisted by Berwin Leighton Paisner (legal advice), PricewaterhouseCoopers (financial), Knight Frank (property ), Willis (insurance), TTSP (architecture and space planning), Halcrow (facilities management), White Young Green (structural), Dunwoody (mechanical and electrical), Walfords (Quantity Surveying and cost), Relocation Information Services (relocation) and Partnerships UK (general PFI support).

7. The principal shareholders in AGP will be the Bouygues Group, whose UK operating divisions will provide demolition, design, construction decant and facilities management services respectively and funds controlled by HSBC Project Equity Investment.

8. Ecovert, as part of the AGP, will be responsible for the delivery of the building management and support services associated with the project.

9. The design team includes architect Terry Farrell & Partners supported by DEGW for interiors and space planning, Pell Frischmann for structural engineering, Flack and Kurtz and Battle McCarthy for Mechanical and Electrical services and Gardiner & Theobald as cost consultants. Property advisors are Montagu Evans and FPD Savills. Financial advisors are CIBC World Markets, legal advisors are Norton Rose and insurance advisors are Lambert Group.

10. The project is funded with a combination of capital and shareholders' loan and the issue of index linked and fixed bonds wrapped by Ambac. Royal Bank of Canada and Barclays Capital are acting on bond indemnities. Ambac has engaged a number of advisers: Allen & Overy (Legal Adviser), MottMacDonald (Technical Adviser), FPD Savills (Property Adviser), Marsh (Insurance Adviser) and Operis (Tax and Model Adviser).

11. AGP with European Land (Godfrey Bradman and Richard Frischmann) was responsible for conceiving the original idea of redeveloping the site at Marsham Street to create a flexible, state of the art headquarters, capable of accommodating the Home Office and HM Prison Service staff at a single address. The design has now been developed by AGP and its advisers in considerable detail to ensure compliance with the Home Office and HM Prison Service occupier brief.

12. The development comprises three linked buildings having a maximum of six upper floors. The lower ground floor, which benefits from natural light, contains much of the shared support space such as the restaurant, the library and the sport and recreation facilities. The ground floor includes an impressive main entrance and reception providing easy but secure access to the conference and training facilities, including a media centre. The two adjoining buildings incorporate separate staff entrances.

13. Accommodation on the upper levels is predominantly arranged as open plan, but with numerous private offices, quiet rooms and meeting rooms of all sizes arranged throughout the building, all business needs can be met.

14. The balance of the site development will include residential, retail and public amenity and space in compliance with the aspirations of Westminster City Council for a truly mixed-use development. A workplace nursery, for use by Home Office and Prison Service staff, as well as other users, is planned. On completion the project will represent a major success in terms of urban regeneration.