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.

Review of submissions

The council received several well-considered proposals for the future of the Municipal Offices, each varying greatly in ambition and intended use. After a thorough review of all submissions and interviews with the bidders, the council has decided to enter a period of exclusivity with a preferred party. 

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.

We are currently finalising the length of the exclusivity period to ensure it aligns with commercial best practices, allowing both sides to conduct thorough due diligence. It is expected to last no longer than a few months. This timeframe offers the prospective buyer a crucial opportunity to perform their due diligence without the risk of being outbid by another party.

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

A list of questions and answers about the sale of the Municipal Offices is also available for further information.

Contact

For further information, please contact Abi Marshall, development manager, by email to [email protected], or call 01242 264171.