The government is set to unveil a major new core property strategy.
Key to the new plan to deal with Whitehall’s £370bn of property is the creation of a select group of civil service hubs across the country.
Estates Gazette understands the Government Property Unit will look to acquire new offices and work with the private sector to develop the sites.
Croydon in south London and Stratford in east London are likely to be among the early targets. Transport for London and the Financial Conduct Authority have already agreed prelets in recent weeks for a combined 675,000 sq ft at Lend Lease’s and London and Continental Railways’ The International Quarter in Stratford, E20.
The hubs will be modelled on Temple Quay House in Bristol, which is occupied by the Crown Prosecution Service, Highways Agency and the Planning Inspectorate.
The government abandoned plans, conceived under the Labour administration, to relocate 5,000 civil servants to a major hub, nicknamed “Whitehall of the North” on the former Mayfield station site near Manchester’s Piccadilly rail station in 2010.
The GPU’s new strategy is also expected to identify hundreds more assets for sale. But it will not look solely at disposals and will form partnerships with developers and investors, where appropriate, to take a share of long-term development gains.
The One Public Estate scheme, launched last summer in 12 pilot areas, is set to be extended to 18 more local authorities, including a first London council, by the end of June.
The pilots have seen councils and Whitehall pool assets and dispose of surplus property, generating £88m in sales in the first year, savings of £21m, and helping to build 7,500 homes.
The current pilot areas are Surrey, Bristol, Cheshire West and Chester, Essex, Hampshire, Hull, Leeds, Nottingham, Portsmouth, Sheffield, Warrington and Worcestershire.
A stricter target of fewer than 10 sq m (108 sq ft) per public sector worker will also be set out in the new plan.
The GPU has saved the government £600m in estate running costs since 2010.
Cabinet Office minister Francis Maude said: “As part of this government’s long-term economic plan we have got out of 1,250 properties since the last general election, saving taxpayers £211m in 2012-13 alone. That’s strong progress but there is a long way to go to make the very best use of our property and land. Our new strategy will build on this major transformation.”
The Cabinet Office will unveil its annual State of the Estate report next week.
nick.whitten@estatesgazette.com
