BP Purchase - September 2016

September 2016

Spelthorne Council is delighted to announce the purchase of the BP site in Sunbury-on-Thames

Beating national and international competition, Spelthorne Borough Council has purchased the BP campus in Sunbury-on-Thames.

The funding given to Spelthorne Borough Council by central Government will be withdrawn completely in 2017-18, a situation which is forcing Spelthorne to find innovative ways to fund services and create new revenue streams, whilst continuing to keep a tight control on costs.

To fund the project, Spelthorne Borough Council has borrowed money at a very competitive rate of interest from the Public Works Loans Board (PWLB).

Under the terms of the agreement, BP will remain as tenants at the Sunbury site, leasing back the offices from Spelthorne Borough Council for a minimum period of 20 years. The arrangement will generate a significant income for the Council year on year.

The BP campus is the largest privately owned office park in the UK and is currently home to approximately 3,000 employees. The site comprises 11 office buildings which provide 620,000 sq ft of accommodation, with surrounding land and car parks.

The purchase was recently approved by Spelthorne Borough Council and BP and encompasses the entire campus, excluding the South West corner. The acquisition forms a key part of the Council's strategy to develop new ways of generating long term income streams to protect its services.  

Cllr Ian Harvey, Leader of Spelthorne Borough Council, said: "Securing the Council's financial stability is our highest priority and after exploring several options and taking advice from a number of independent experts, we are confident that this forward-thinking agreement represents a very sound investment for Spelthorne. It will be key in helping us to close the budget gap and protect the vital services which our residents and businesses need and deserve. We have had an excellent relationship with BP for many years and we are very pleased to be working with them on this exciting initiative."

Peter Mather, Head of Country UK, BP, said: "For almost 100 years BP has had a significant presence at Sunbury-on-Thames. Here we have conducted research, developed leading technologies, and run our global businesses. We are pleased to commit to a further 20 years at the site through this new and exciting long-term relationship with Spelthorne Borough Council."

December 2016

Spelthorne purchases final part of BP campus

Spelthorne Council is pleased to announce the purchase of the south west corner of the BP campus in Sunbury-on-Thames, completing their ownership of the site.

In September the Council announced a sale and lease back agreement involving the entire BP campus excluding the south west corner which was not included as part of the original sale.

Under the terms of the latest agreement, BP will remain as tenants on the 145,500 sq ft site, leasing back the offices from the Council for a minimum period of 12 years. The arrangement will generate a significant annual income for Spelthorne and forms a key part of the Council's strategy to develop new ways of generating long term income streams to protect its services.

To fund the project, Spelthorne Borough Council has borrowed at a very competitive rate of interest from the Public Works Loans Board (PWLB).

Cllr Ian Harvey, Leader of Spelthorne Borough Council, said: "I am delighted to be able to announce that we have purchased the remaining portion of the BP site. The withdrawal of Government funding is forcing us to find new ways to plug the gap in our finances and we believe that this kind of investments are the best way to secure services for our residents into the future."