New bidder found for Shire Hall in Cambridge - after deals with previous two buyers fell through

A potential new buyer has been found for Shire Hall in Cambridge after two previous attempts to sell the building fell through.

Cambridgeshire County Council has entered into a three-month exclusivity period with an as-yet unnamed would-be buyer for its former headquarters.

This gives the council and the buyer until 6 June to exchange contracts.

The authority decided in 2018 that it would build a new headquarters in Alconbury Weald, and moved there from Shire Hall in 2021.

A sale of Shire Hall to developer Brookgate, which planned to turn it into a hotel, was initially pursued, but this fell through in 2023 due to “significant changes in the economic position of the deal”, which led to the bid being withdrawn.

The building was marketed again in 2024 and an unnamed preferred bidder was selected.

The council entered into an exclusivity period with the bidder, but that ended in October without a final agreement being reached.

The authority opened up discussions again with others who had shown an interest and a report to the assets and procurement committee, which met on 7 March, said the new preferred bidder had proposed an unconditional long leasehold disposal.

Castle Street car park is not included in this potential sale and would continue to be owned by the council.

Details of the bidder’s plans for the site have yet to be made public.

Councillor Mark Goldsack (Con, Soham North and Isleham) asked if there is a back up plan if it fell through.

Officers said they were “confident” the new bidder would proceed but if it did not, they would need to take advice on whether to look at other previously shortlisted bidders, or consider remarketing it.

Cllr Goldsack asked if officers had considered the potential impact of local government reform on the ownership of the building.

Officers said they had and included an additional option for councillors to consider in the report. This set out the possibility of withdrawing Shire Hall from the market and considering whether there could be a need after reorganisation for larger office accommodation.

Michael Hudson, executive director for finance and resources, noted it could cost an estimated £30million to £40million to bring the offices there up to a modern standard.

Cllr Lorna Dupré (Lib Dem, Sutton) was a “bit bemused” by this thinking, since any local government reorganisation was likely to lead to a “glut of surplus public sector local government office accommodation”.

The committee continued the discussion in a private session before agreeing to move ahead with the exclusivity period with the new preferred bidder.