Sale of the Municipal Offices
The Municipal Offices (MO) is an iconic building which plays a prominent role in shaping Cheltenham’s town centre identity. As the long-standing home of Cheltenham Borough Council (CBC), it has a direct influence on a number of the council’s strategic objectives, from creating a collaborative working environment that attracts and retains top talent through to maintaining an efficient cost base.
In a report to Full Council in April 2015, it was acknowledged that remaining in the Municipal Offices was not a viable option for the future. Since that date, the council has purchased a number of investment properties that could meet the operational requirements of its workforce in a reduced office ‘footprint’.
The CBC organisation and the shape of its workforce have changed significantly over the years, leaving the asset underutilised. Occupancy studies have established that the number of CBC employees that the building needs to accommodate is considerably less than at certain times in the past. The CBC operating model and accelerated adoption of hybrid working in a post pandemic world is not optimised by the condition and internal layout of the building. This has presented a timely opportunity to reflect on what the long-term purpose and uses of the MO building are so that it continues to play an active role in shaping a vibrant future for the town centre, while enabling CBC to remain financially sustainable.
Questions and answers about the sale of the Municipal Offices
A list of questions and answers about the sale of the Municipal Offices is available for further information.
The council has occupied this historic and important building, and it has been used as offices for over 100 years, during this period, however, the ways of working have changed, and the building is no longer suited to modern and efficient working practices.
Listed buildings of this scale are also costly to heat and due to the fabric of the building can be expensive to maintain and the listed nature often inhibits change.
The council is therefore seeking a buyer who has the means and ability to overhaul the building, look toward alternative uses whilst also preserving this landmark property for future generations. The sale will generate capital for local authority services and by relocating staff to more modern and efficient working environment make future reductions in ongoing maintenance and utility costs.
The council has committed to an ongoing presence in the town centre and owns a range of real estate assets within Cheltenham offering potential alternatives for those currently working within the Municipal building.
All information relating to the building is available on the agent’s website and related data room which holds further documents and details (requires registration).
The Municipal building is currently in use as offices; however, the building has the potential for a range of other uses, subject to planning permission and listed building consent.
To receive the best value for the site, the council is open to receiving offers from those seeking conversion to a full range of uses prior to selecting a preferred bidder.
The building will not be marketed with a guide price in order to seek the true market value of the property.
Bidders are required to undertake an in-depth assessment of the options prior to submitting their bids and will be required to demonstrate their plans during the bid process enabling the council to assess their robustness and deliverability.
The council has committed to retaining a presence in the town centre beyond the sale and vacation of the Municipal building.
In the short term, the council will remain in the property until such time as the purchaser is ready to make a meaningful start on conversion (post planning and listed building consent), this is to maintain activity at the site and prevent mothballing, protecting it from deterioration or risk of vandalism through being left unoccupied.
Only parties interested in bidding for the property can view the site; those seeking a “tour” will not be permitted.
Viewings are strictly by appointment only and will only be undertaken through the agent, Avison Young.
In preparation for the sale, the council undertook consultation with an extensive list of stakeholders.
The purchaser of the property will be responsible for preparing and submitting a planning and listed building application which will be consulted on; however, this will only be undertaken after the marketing process has been concluded.
Prospective bidders will need to provide details relating to their proposed professional team, anticipated scheme proposals and proof of available funds as well as their financial offer and associated conditions. Our agents will manage this process.
The council has employed global real estate advisor, Avison Young to market the Municipal building. With extensive experience in dealing with high-profile listed building disposals across the UK and with an international reach, the council is confident that the sale will reach a wide cross-section of potential bidders.
Each bidder will be required to provide a range of information with their bid including their proposed plans for the site. The council will assess their deliverability which will be considered alongside the financial offer during the assessment period. Avison Young will support the evaluation throughout and ahead of the council submitting its recommendation to Cabinet for approval.
The council will also employ several strategies to ensure the building is not mothballed.
Only the footprint land and building that forms the Municipal Offices is being sold. Today, the council offices are a single mid-terrace building but was formally 13 town houses, odd numbers 49 – 79 The Promenade. The sale will include the bike shed, Council Chamber, public toilets (at the rear) and all the extensions at the rear of the building.
The ownership extends to the back and front to the pavement (highways), and to Winkworths (estate agents) on the south west end and Simon Burn (solicitors) on the north east end.
The ownership also includes metal railings to the front and surface car park to the rear.
The sale excludes the bus station to the rear and the Long Gardens and War Memorial to the front.
Cheltenham Borough Council do not own the car parking to the front of the building. Gloucestershire Highways will retain responsibility for this parking, it is not included in the sale.
All information relating to the building is available on the agent’s website and related data room which holds further documents and details (requires registration).
The council is committed to be open and transparent about the building providing sufficient information to potential purchasers and aiding them to offer the right money to purchase the building.
The building has the potential for a range of other uses, subject to planning permission and listed building consent.
The building needs to be a success to secure its future for generations to come, so most uses will be considered.
Bidders will be required to undertake an in-depth assessment of the options prior to submitting their bids.
Bidders will be required to demonstrate their plans during the bid process for the council to assess their robustness and deliverability.
In short, no. The council may opt to stay in the building post sale, to stop the building lying vacant and dormant. This will be agreed as part of the disposal negotiation process.
There is already reassuring interest from several potential buyers.
Potential buyers will be required to demonstrate their plans during the bid process for the council to assess their robustness and deliverability.
Initial viewings are due to take place at the end of October to the beginning of November 2024.
Bids are to be submitted by 12 December 2024 (extended from 22 November). There will be a long period of negotiation and consultation. Further updates will occur during this time.
There are several reasons for extending the bid date:
- The uniqueness of the opportunity, and building complexities and the volume of the information available mean that buyers need more time to digest the information
- The bidders, have one initial opportunity to make the best first impression, they need time to prepare for that
- Continuing emergence of international interest, who are engaging at a later stage within the programmed bidding period
Contact
For further information, please contact Abi Marshall, development manager, by email to Abi.Marshall@cheltenham.gov.uk, or call 01242 264171.