Wates and Equion win PFIs

Two more private finance social housing deals have reached preferred bidder stage at last, with Equion and Wates lined up to carry out the projects.

More than two years after shortlisting consortia to pitch for the tranche one projects, preferred bidders are finally in place for the London Borough of Newham's £30m-plus scheme and Reading Borough Council's £18m deal.

A group featuring Equion, Pinnacle Housing Management and London & Quadrant Housing Trust, has clinched the troubled Newham scheme. It was the only contender.

One of its two initial rivals, Partners for Improvement in Newham (including Unitary, the United House and Rydon Construction joint venture) pulled out of the bidding, to be followed this year by the withdrawal of the Aspire consortium (including Lovell and the Paddington Churches and Ujima Housing Associations).

It is understood that, after taking legal advice, Newham got the all clear to award the scheme to the sole contender.

It is thought that Newham has followed the lead of the London Borough of Camden over the award of its PFI social housing project (CJ 16 October 2002). Last November, Camden named the Unitary team as its preferred bidder, despite the fact that the two other candidates, led by Bovis and Carillion, similarly pulled out of the fray.

The Newham deal includes upgrading 1,200 homes, plus some new-build houses on a 1.8ha brownfield site.

Affinity, headed up by Wates, is the preferred bidder for the Reading scheme. It replaced a Jarvis-led team which withdrew. Only one of the original three groups eventually went though with its bid. A Mowlem-led team was replaced by Ballast/Thames Valley Housing. The Reading scheme is expected to start on site in October. It includes revamping 1,400 homes in the north Whitley area.

Two more tranche one schemes have still not reached preferred bidder stage.

More than two years after shortlisting bidders, Leeds City Council will not decide until September between Mowlem and Lovell for its £45m project.

And Sandwell Metropolitan Borough Council, despite sending out tender documents in November 2000, has still to decide between Mansell/Beazer and John Laing Partnership for its £50m scheme.