Become a Member

Shortlisting the options

 

Contents:

  1. HQ Programme overview
  2. Programme process & timeline
  3. HQSB Management Structure
  4. Shortlisting the options
  5. Headquarters requirements and floorplan
  6. Latest news
  7. Recordings
 

The HQ Programme process follows the HM Treasury Green Book approach, ensuring a balanced evaluation of financial and non-financial criteria.

The HQ Sponsor Board has approved the Outline Business Case (OBC), which looked at the long list of options, and developed a shortlist. Following consultation with the Institution’s governance committees, including Audit & Risk, Finance, StratCom, and Council, Trustee Board will select a preferred option in September 2025. 

The Long List of Options are grouped into four colour-coded themes to explore the full range of possibilities for the future of the Birdcage Walk estate: 

 

Repair and Refurbish (Blue)

These options involve the Institution retaining the estate and carrying out repairs and refurbishment directly, either all at once or phased over time. 

Partner with a Developer (Green)

This approach involves entering into a partnership with a developer to convert part or all of the estate, potentially into a hotel, office, or residential scheme. The Institution could lease back space. Options vary in scale and structure, with both freehold and leasehold models assessed.

Sell Part of the Estate (Purple)

These options involve selling off part of the estate, such as 3 Birdcage Walk or 8–12 Old Queen Street, while retaining and operating from the remaining space. 

Sell the Whole Estate (Yellow)

These scenarios involve a full disposal of the Birdcage Walk estate, with the Institution relocating to a new site in London, elsewhere in the UK, or shifting to a largely virtual model. 
 

Shortlist of Options 

Following rigorous analysis, five options have been shortlisted for detailed modelling and evaluation. These reflect a range of strategic and financial scenarios across the four themes: 

Option B – Refurbishment by the Institution

An option where the Institution funds and manages a full refurbishment itself. This would likely rely on charitable reserves and/or borrowing and/or fundraising. 

Option F – Partnership with Hotel Scheme

A developer converts part or all the site into a hotel, with the Institution leasing back space. While viable, concerns have been raised about long-term control and compatibility with hotel design models.

Option I – Part-sale with Retained Title and Occupation

The Institution sells part of the estate but retains full legal control over the part it continues to occupy. This option provides stability, clarity of title, and continuity at Birdcage Walk.

Option J – Variant of I with Partial Relocation

Similar to Option I, but with less space retained, requiring partial relocation of staff. It involves a “flying freehold” arrangement, which could introduce legal complexity.

Option M – Full Relocation within London

A complete relocation to a new site in London, through purchase or lease. This offers the opportunity to create a fit-for-purpose space aligned with future needs.
 

Shortlist Selection Process 

To ensure a rigorous and transparent decision-making process, an independent facilitator was engaged to guide the shortlisting exercise using two well-established methods: Net Present Value (NPV) analysis and a Multi-Factor Assessment (MFA). This robust approach ensured that all options were evaluated consistently against both financial and strategic criteria and externally validated. 

Following HM Treasury’s ‘Green Book’ methodology, the process combined quantitative and qualitative analysis to identify the most cost-effective and strategically aligned solutions. 

Net Present Value (NPV) 

The NPV method, as outlined in HM Treasury’s Green Book, was used to assess the economic value of each proposal by comparing long-term costs and benefits. This involved:

  • Calculating annual net benefits (benefits minus costs) and discounting those values to their present-day equivalents
  • Summing the results to calculate each option’s NPV
The final NPV figures helped determine which options offered the best value for money in today’s terms. 

Multi-Factor Assessment (MFA) 

The MFA provided a structured framework for evaluating multiple options against clearly defined criteria. This approach used:

  • Critical success factors and metrics
  • Weighting to reflect the importance of each metric
  • A scoring system to assess each option consistently
      • Scores were aggregated and weighted to prioritise options that best aligned with the project’s strategic objectives. 

      By combining NPV and MFA, we ensured a balanced view that considers both financial viability and strategic value. 

      Following rigorous analysis, five options have been shortlisted for detailed modelling and evaluation. These reflect a range of strategic and financial scenarios across the four themes: