Council sells city centre offices for £12m

The University of Southampton already occupied floors in One Guildhall Square

A landmark city centre building in Southampton has been sold by its cash-strapped council for more than £12m.

Southampton City Council completed the sale of One Guildhall Square to the University of Southampton earlier this year.

Money from the disposal of such assets are being used to plug a £39.3m gap in the local authority's 2024-25 budget.

The university said the building would be refurbished to become part of a city centre campus.

The Labour administration said it was looking to retain, develop or regenerate much of the council’s portfolio, while selling properties and sites it did not really need any more.

It received in-principle approval from the government to use capital income to cover revenue costs to save it from effective bankruptcy.

The authority has confirmed listed buildings, schools, libraries and housing stock would not be sold.

One Guildhall Square occupies the site of the former C&A department store in Above Bar Street.

The University of Southampton was already occupying part of the building while council office space had been moved to the nearby Civic Centre following the pandemic.

Councillors signed off on disposing of the freehold for the site in November but the buyer and income from the sale were not disclosed.

Council accounts published in May showed the the sale proceeds were £12.75m (net of VAT) as part of its Asset Development and Disposal Programme.

'Substantial footprint'

The programme is aiming to bring in £85m.

Civic leaders have denied it was a “mass sell-off”, instead describing it as an opportunity to manage assets “much more proactively”.

“The sale was made in line with our legal duties to get best value for the residents of Southampton for any assets we sell," a spokesperson said.

"The capital receipts from the sale contribute to our plans to be a modern, sustainable council."

The university's director of estates, Kevin Argent, said the building, along with its others on Guildhall Square, would be known as the City Centre Campus.

He said: “We are very excited with the possibilities this purchase opens up for the university.

"We now have a substantial footprint in the cultural quarter of the city."