University of Chester says £10.3m County Hall deal is ‘good value’

Dec 14 2009 by David Holmes, Chester Chronicle

THE University of Chester says it paid a ‘fair’ price for County Hall despite shelling out twice its estimated worth, according to one valuation.

Vendors Cheshire West and Chester Council (CWAC) valued its headquarters at between £5-£6m.

But the university, which will use the building for the departments of health & social care and education & children’s services, marketing, recruitment and admissions, bought it for £10.275m.

Other valuations by Cheshire East Council – which owns half of County Hall – and the university attached a higher price than the District Valuer. The university is unwilling to divulge details of its valuation but said the deal represented “good value”.

A spokeswoman said: “Valuations were undertaken by all three parties against a background of a complex and fluctuating market. The final price reflects the uniqueness of the site and its value to the University as existing premises which include the lease of the law courts, additional car parking and all of the contents, such as substantial IT infrastructure and furniture.

“Given all these factors, the price of £10.275 million is fair and competitive. The purchase is also an affirmation of the University’s long-term commitment to the city and its economic success.

The University says it had been seeking a base in the “heart of the city” for a considerable time given its main campus is situated outside the city centre.

The spokeswoman added: “ The unrivalled central location brings potential benefits in the form of greater engagement with business and the community, which would not have been available from a new building confined to the existing campus.”

County Hall will be handed over in phases. Construction and a refurbishment will begin in February.