Warrington edges towards Birchwood Park disposal
With budget pressures leading the council to seek an exit, Place North West understands the the 120-acre business estate is under offer to global investment giant Goldman Sachs, working with asset manager Canmoor.
Warrington Council bought the park for around £200m from Oaktree Capital Management and Patrizia in 2017, at a time when councils across the country were making major plays in investment property, seeking to create revenues as central government slashed budgets.
A tentative marketing process began last spring – although stressing that it was not pushing for a sale explicitly, in May the cash-strapped local authority failed a best value inspection and said it would “consider offers” for Birchwood Park.
Pressure to balance the municipal books has built up even more since.
Last week, the council confirmed a revised budget gap of £130m over the next four years, escalated from the £90m gap reported in December – a fresh projection based largely on “potential impacts of the council’s commercial portfolio and six years of unaudited accounts”.
Warrington said that while the commercial portfolio has generated £166m since 2009, the council’s commercial approach has failed, due to exposing the council to too much risk, and the portfolio’s value has declined by an estimated £275m. However, it stressed there will be no “fire sale”.
Proposals for a rejigged budget, in which £40m of savings are identified, will go before Warrington’s scrutiny committee and then cabinet next week, before going to full council in March.
Papers prepared for a cabinet meeting in early January sought backing for officers to move the Birchwood disposal on, and cabinet papers now issued ahead of the cabinet meeting on 18 February recommend specifically that cabinet agrees to progressing the sale.
It is also requested that cabinet approve that officers progress with planning an exit from the council’s shareholding position in the Wire Regeneration joint venture with Langtree, once housing land at Bevan Mews is sold and the redevelopment of the St James office building into The Causeway is wrapped up.
Then-chief executive of Warrington Council Steve Broomhead defended the local authority’s real erstate policy at a Place North West event in 2024 – although the council’s £1.8bn debt pile led to its failing a best value inspection last year.
Birchwood Park offers around 1.25m sq ft of commercial space. More than 160 companies are now based at the park, an estate with origins in the nuclear sector, and one that is still home to 30 organisations working in that field – Amentum, Cavendish Nuclear, Rolls-Royce SMR and UK National Nuclear Laboratory are all based at Birchwood.
Within the park, the 1958-built Chadwick House has in recent years been undergoing an overhaul to bring it into line with energy efficiency requirements, one of the outcomes being a deal with Persimmon for a 10,000 sq ft regional HQ, agreed in 2024.
A Warrington Council spokesperson told Place: “The council consistently reviews the market and what may constitute best value for any of its assets. The council maintains exit strategies and development plans for all of its assets.”
Goldman Sachs declined to comment.
Just wondering how long this council will last before running to the government to bail them out.Risky investments? Didn’t they invest in Icelandic banks ? How did that pan out.
Still if they keep on building hundreds of houses that will solve the problem, won’t it ?
By Cheshire Man
Sell in a panic.
By Anonymous
No audited accounts for 6 years assets dropped by 275m ….think a few questions should be asked of departed chief exec and finance director?
By George,
But they still gave themselves a rise did they?
By Warrington Resident
Most residential real estate has increased in value since 2017…yet Warrington Council manage to rack up losses and billions of debt spending on using public works loans. This is what happens when council cabinets are able to to evade scrutiny from both government and the public through not having audits signed off for 6 years and cabinet members having zero accountability for their actions. A failed Labour council propped up by a small number of Liberal councillors, and no effective opposition. The cuts now faced by Warrington residents will be far greater than any they would have had faced, if the council had not decided to gamble with Public works loans.
By Angry resident