Update on RCGP Headquarters

30 Euston Square has been a fantastic home for the RCGP and General Practitioners since 2012, but recent significant factors have necessitated the need to review our HQ.

Since RCGP purchased 30 Euston Square in 2010 much has changed.

• Post pandemic working patterns have changed, we need less office space since we moved to a hybrid and online working approach.
• Our Exams no longer require the examination centre which occupies a significant amount of the building.
• The market to let empty office space is challenging
• The commercial events and conferencing business is increasingly competitive

All of this means it has become increasingly difficult for a charity/organisation of our size to use the building in an efficient and cost-effective way. The building is currently operating at a loss and would require considerable investment to maximise its commercial potential and bring it into line with the College’s net zero ambitions.

At this stage the Trustee Board has confirmed this as our preferred option. We now want to engage with our members, our staff and other affected stakeholders on this option. We will feed the output from this engagement back to a Trustee meeting in April for a final decision.  Should the Trustee Board decide to proceed, we would expect the process of selling 30 Euston Square and relocating to a new HQ to take around two years.  

Expert analysis indicates the receipts from the sale of 30 Euston Square would be more than enough to enable the College to secure a new, right-sized, HQ in London.  We want to ensure that our future HQ reflects our future vision for the College and the profession, and we will be carrying out an engagement exercise to allow our members and our staff to share their views about what our needs and requirements might look like.  We anticipate that, as a condition of sale of 30 Euston Square, we should be well positioned to negotiate the ability for the College to remain in the building for a time limited period, so that we can move directly to a new home without the need to find interim accommodation. 

While we are committed to being as transparent as possible, we are not in a position to share the detailed analysis that was presented to the Board as some of this is commercially sensitive.

The preferred option was identified by the Board of Trustees following a comprehensive strategic review of the options for 30 Euston Square. The Trustee Board has a responsibility to ensure that we use the College’s resources in the best possible way to achieve our charitable objectives, and it became clear that, as a result of the changed environment since the pandemic, we were increasingly struggling to achieve this with 30 Euston Square. We therefore engaged a number of expert partners to undertake a detailed review, to understand how the current building use could be changed and improved and what opportunities there would be if we looked at moving.

The review looked at a number of alternatives to moving, including redevelopment of the building to maximise the value generated from the office, conference and event space; and retaining part of the building whilst partitioning off the rest of it for sale. Ultimately, though, the analysis showed that these options would be significantly less financially advantageous, and the Planning and Resources committee recommended that the College take forward the option of the sale of 30 Euston Square and relocation to a new building. Following an in depth discussion taking into account a wide range of considerations, the Board of Trustees unanimously adopted this as its preferred option, on the basis that we would undertake a full engagement exercise with Council, members and staff, before bringing it back to the Board for a final decision.

Yes. We are following all relevant guidance from the Charity Commission and have sought legal and professional advice throughout.

We have robust governance procedures in place to manage such risks. During the process we noted that the Officers/Trustees are frequent users of 30 Euston Square.

No, the review was limited to our 30 Euston Square HQ, in the light of the specific challenges affecting our ability to maximise the value we receive from it.

No. The property is owned by the college with some mortgage remaining and there are no legal restrictions preventing its sale. We will have legal and other professional advice throughout the process.

No, at this stage we are not required to notify the Charity Commission. Should we take this option forward then we will engage with the Charity Commission as required.

The College has sought to lease the vacant space in the building but, despite repeated attempts, this has met with only limited success.  The advice that we have received is that this is a product of challenging market conditions particularly for a building laid out as ours currently is, combined with the building’s strong RCGP branding. 
 

We don’t know how much would be left over from the sale of the 30 Euston Square once a new HQ has been purchased. At this stage we are engaging members and staff on the preferred option and not looking at how any remaining funds from the sale would be used if we do move forward. Funds from any sale would be used strategically in service of our charitable purpose to "encourage, foster and maintain the highest possible standards in general medical practice" and to support our members in that purpose.  

No. This is a proactive decision based on strategic priorities and to ensure we are managing our strategic assets in the best possible way, not a response to financial distress. 

Yes, we commissioned an independent valuation to ensure the Trustee Board understood the potential value of the building. This was part of a wider piece of work on the building and how we best use it as a strategic asset.  

Yes.  Based on the advice we have received, we are confident in our ability to generate strong interest from a range of potential purchasers.

We needed to renew the roof terrace as it was no longer safe from a health and safety perspective, and we use it to generate an income for the College through commercial activities. At the point the decision was made to renew the terrace the review of 30 Euston Square was ongoing, and it was agreed that the renewal was value for money. 

We will engage with members and staff on our future needs and requirements to inform the search for a new HQ, should the decision to relocate be confirmed. 

At this stage our working assumption is that the new HQ would be located in central London. However, we recognise that there may be a range of views and there will be an opportunity to feedback on this point as part of the process of gathering input on the criteria to inform our search process. 

We will engage with our staff colleagues throughout this process, including through our Colleague Network Committee (CNC) and through the Joint Negotiating and Consultative Committee (JNCC) with Unite, our recognised trade union. Staff colleagues will have the opportunity to give feedback on the preferred option and to share their views on what we should be looking for from a new HQ should we relocate.  In addition, we would undertake a formal consultation process with Unite and with staff at the point that a new office location is identified.  

We do not envisage any change of the current hybrid working policy for staff as a result of this process. If we do move buildings, we will want to have a discussion with colleagues about the design of any new space to ensure that it enables effective hybrid working and maximises opportunities for good collaboration within, and across teams.

At this stage we do not envisage any redundancies as we are at preferred option stage only. Should a formal decision to relocate be taken then we will review future resource requirements once we have clarity on what the future HQ looks like and the support needs associated with it. Any changes to office location would be subject to consultation with Unite and any individuals affected.

We are committed to honouring the legacy of those who made the move to 30 Euston Square possible and ensuring that the heritage of the College is honoured. If a final decision is made to relocate then we will work with those members who are on the Foundation Wall to ensure their contribution is recognised in an appropriate way at our new HQ.

No. Our services will continue. The sale will not affect our ability to deliver support to all our members.

Decisions around what the college would do if we sold the building will be made once we have made that decision and have a clear idea of what that means. The Board envisage a broad review of how any additional funds could be used to support the long-term achievement of our charitable purpose.

As part of the engagement process, we are talking to our tenants and our commercial partners who operate in and support 30 Euston Square, to explore the implications for them and how we can work together to manage the change.