Since closing in 2019, the Herbert, Kimberley, and Philpotts (HKP) warehouses in Gloucester Docks have been a costly burden for taxpayers. Gloucester City Council has been trying to sell the former council offices, located above Dr Foster, since 2023, but the site has proven to be challenging to develop.
The council revealed that maintaining the empty buildings costs approximately £132,000 each year. At the last full council meeting, Councillor Karen James (Labour, Kingsway) requested an update on the sale of the property. She highlighted that the warehouses have remained unoccupied for five years, leading to increasing maintenance and security expenses.
Council leader Jeremy Hilton (Liberal Democrats, Kingsholm and Wotton) explained that the council is in “close negotiations” with a potential buyer. The buyer initially planned to convert the buildings into student accommodation but has since revised their proposal due to a lack of demand for student housing in Gloucester. Complicating the development is the presence of ground-floor tenants, making the site more difficult to repurpose.
Hilton emphasized that the sale is part of the council’s broader financial strategy to raise capital and reduce borrowing. Selling HKP for its estimated value of £2 million would help avoid the need to borrow that amount, easing pressure on the council’s £15.5 million exceptional financial support package.
Councillor James pointed out the inefficiency of holding onto unused assets during a time of financial strain for the city. “Keeping a large building such as HKP empty for seven years is clearly not a sensible use of resources,” she said. “The council should prioritize maximizing the value of its assets, selling properties like HKP promptly to support Gloucester’s financial recovery.”