The Newcastle City Council has published a contract notice inviting organisations to finance, design, build and fit out new homes in the city, located in the north-east of England.

There are 197 units on eight sites across Newcastle proposed for inclusion. These will be a mix of bungalows and Tyneside flats for older persons and people with physical care and support needs, residential apartments for people with learning disabilities and/or autism, and a sheltered apartment scheme for older persons.

The homes delivered will be leased back to the council for a set period of time under an Annuity Lease Back Model (ALBM). At the end of this period, all property and assets will revert back to council ownership. By leasing the properties back to the council the private partner will secure a long term fixed return for the investment. 

The lease period is for 65 years, however, there is a break clause in the overriding lease at 40 years. Therefore the investment return period should be profiled over a 40 year period.

The submission deadline for the tender is 1 April 2019.