The move follows Lambeth Council reducing the number of offices it runs from 14 to two in a bid to save money and use the majority of its buildings to create new homes, generate income and offer more modern customer services.
The council aims to issue a 32-year lease on Phoenix House, subject to planning permission, while keeping the longer-term head lease which has the majority of its 999-years remaining.
The council vacated Phoenix House in 2019 as part of the award-winning Your New Town Hall scheme. This wide-ranging project to reduced Lambeth Council’s core office buildings from 14 to two, with further community benefits including 219 new homes for rent and sale.
Initial attempts to rent out the building to an international office operator were unsuccessful after the firm experienced financial difficulties. During the Covid-19 when demand for buildings of this size was depressed the council used the offices as temporary space for specific projects.
Cllr David Amos, Lambeth’s Cabinet Member for Finance, said: “I’m delighted that we have agreed a rental agreement that will see this property brought back into use, boost the local area and create income for the council at a time of unprecedented financial strains on our budget.
“A hotel operator was chosen as the best option for Phoenix House because as well as getting rent for the council it supports our work to boost evening activity in the area which is one of the London Mayor’s Night Time Enterprise Zones.
“The building will also be brough back into use at a high level of environmental sustainability standards and create new job opportunities for local people.
“We are ambitious for our town centres and expect that this agreement, if concluded, will be a catalyst for making further improvements to Vauxhall with the aim of making it a far more attractive and safe place to both live and visit.”
