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.

Details of the sale

As of Monday 30 September 2024, the Municipal Offices were marketed for sale. The closing date for bids was 12 December 2024.

Avison Young worked on a strategy to bring the building to the market over a period of several months and will work with the council on a period of community engagement prior to the new occupier moving into the property. The council is committed to safeguarding the building and respecting its heritage, whilst taking the opportunity for a purchaser to make improvements and create space for future opportunities.

Ongoing due diligence

We’ve reached the next stage in the Municipal Offices sale with the council entering into a new exclusivity agreement with the preferred bidder.

A "period of exclusivity" means that we will negotiate solely with one party for a specific duration. This decision is driven by the interest we have received in the property, and it prevents the council from engaging with other potential buyers during this time.

Central to the sale is the ability of the buyer to preserve the heritage of the building for future generations while having the vision to reach its potential and the required funds to match the work.

The preferred bidder is about to start the process of surveying and inspecting the building to gather information to support them with their planning application and inform their next steps. The inspections will be visual investigations, no physical works will occur, so disruption will be kept to a minimum.

Due to ongoing commercial sensitivities, we are limited in the information we can share at this time.

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.

Why is the council selling the Municipal building?

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.

Will council services be disrupted?

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.

What will the building’s use be going forward?

The Municipal building is currently in use as offices; however, the preferred bid sets out a proposal to transform the Municipal Offices into a vibrant, luxury brand hotel, offering rooms, a spa, event, banqueting and conference space.

How long will the council remain in the building?

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.

How will the council ensure best value?

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 will also employ several strategies to ensure the building is not mothballed.

What is being sold?

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.

Is the parking to the front of the building being sold?

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.

Will buyers be made aware of the properties condition and listed status?

All information relating to the building was available on the agent’s website and related data room which featured further documents and details.

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.

Will the council retain (keep) any of the Municipal Offices?

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.