The financial viability of Bromley Council’s new offices has been a topic of concern, with opposition councillors raising questions about the metrics used to justify renting out the building. The council has dismissed these concerns, stating that they will invest in marketing the block to determine potential rental income.
Churchill Court, located on Westmoreland Road in Bromley town centre, was purchased by the council in July 2024. The council plans to move into the space in phases by the end of the year. One of the blocks in the building is set to be marketed for office space rental.
During a scrutiny meeting on October 10, Labour councillors claimed that the financial yield estimates for letting out the block did not include the purchase price of the asset, leading to higher costs than initially reported. The council officer admitted that it was unclear how much would need to be spent on marketing to secure a good deal.
The council’s executive committee has approved up to £150,000 to be spent on marketing the block in an effort to minimize the time the building remains vacant and reduce dual running costs. However, opposition councillors argued that the financial projections should be more accurate to ensure the business case is strong.
Labour Councillor Jeremy Adams stated that the goal of calling in the plans was not to oppose the council’s decision but to seek more precise revenue projections based on occupancy rates. The council officer responded by emphasizing the importance of securing tenants to reduce costs associated with dividing the block into smaller spaces.
Conservative Councillor Simon Fawthrop expressed his belief that no further action needed to be taken on the matter, as progress was unlikely to be made by addressing the concerns raised. The council is eager to move forward with the scheme following positive feedback from soft market testing conducted by the authority.
In conclusion, while concerns have been raised about the financial viability of the new offices, the council remains committed to marketing the block for rental income. By attracting tenants and minimizing vacancy periods, the council aims to maximize the potential returns on their investment in Churchill Court.