Tender

Portsmouth seeks DBFO partner for 60 extra care homes at Cosham

By Staff Writer  |  14 October 2026

Portsmouth City Council is looking for a provider to design, build, finance and operate about 60 extra care homes on the cleared site of the former Edinburgh House care home in Sundridge Close, Cosham.

The tender notice was published on Find a Tender on 13 October 2026. The council treats the arrangement as a concession contract under section 8 of the Procurement Act 2023 and is running a competitive flexible procedure. The site is wholly owned by the council, which intends to keep the freehold and grant a long lease, with 100 per cent nomination rights to the council on a 100 per cent affordable rent basis.

The site and the scheme

The Edinburgh House site secured detailed planning approval in 2023 for 50 extra care units. An in-house massing study has since led the council to believe the site can take at least 60 affordable units, so the appointed provider will review the consented design and submit a new planning application. The council expects a split of 95 per cent one bed and 5 per cent two bed homes, with communal areas, gardens and activity spaces, compliance with the HAPPI and TAPPI standards, and a BREEAM rating of Excellent or Good.

The council has already cleared the site and built a new access road, although the notice states that the provider will carry certain obligations in relation to that road. The provider will secure all, or at least the very large majority, of the development funding, build the scheme and then run landlord and housing management services for the term of the lease. Care and support will be procured separately, and the successful provider will be barred from bidding for that later contract.

Lease terms and the figures

The council plans an agreement for lease with an initial 12 month term and a 30 month long stop. A planning application must be made within six months of the agreement starting, development must begin within four months of planning permission being clear of judicial review, and construction must finish within 24 months. The lease itself will run for no less than 40 years and no more than 250 years, including extensions, and will be offered on a peppercorn basis. The council will consider bids that need some underwriting of void properties, or a capital contribution where viability depends on it.

The notice sets out how the council reached its estimates. Using regional rent and service charge levels of 226 pounds a week for a one bed home and 255 pounds for a two bed home, 90 per cent occupancy and 60 homes, it puts annual revenue at about 640,000 pounds. On a 40 year lease, allowing for inflation and about 1.65m pounds of land value and enabling works, it values the opportunity at about 45m pounds. Linking the term to a likely operational life of 80 to 100 years, it places the upper end between 160m and 280m pounds, and the notice records 280,000,000 pounds excluding VAT as the estimated value.

How the provider will be chosen

Applications are due by 12:00 on 13 November 2026, with clarification questions closing at 17:00 on 4 November. The four highest scoring applicants will go forward. Conditions of participation include insurance, financial capacity, data protection, modern slavery, health and safety, and the applicant's standing as a registered provider, including its consumer regulation grade from the Regulator of Social Housing. Scored case studies carry up to 24 points across funding, scale, nominations, BREEAM and regulatory performance.

Tenders are expected to be weighted 40 per cent quality and technical and 60 per cent cost and commercial. The largest single elements are the commercial model, business plan and net present value assessment, and affordable rent and service charge setting, at 20 per cent each. Outline facility design carries 15 per cent; programme and risk, the delivery model, voids, and client capital contributions and returns 10 per cent each; and social value 5 per cent.

Stage 2 tenders are due on 5 February 2027 and best and final tenders on 16 April 2027. The council plans to publish the award notice on 17 May 2027 and confirm the award on 28 May 2027. The council reference is P00005241 and the notice is registered as 096755-2026.