Further details of the deal for Granville Theatre owners Westwood One to take on the Margate Winter Gardens will be discussed by councillors next week.
Westwood One Ltd, which also operates Under 1 Roof Thanet in Pysons Road, looks set to be granted a 999 year lease for the Grade II listed Winter Gardens.
The company, headed by Ramsgate sisters Zahra and Parisa Tarjomani and Pyramid Martial Arts & Just Kids Parties owner Matt Milchard, aims to create a theatre and live music venue, with conference, corporate events and weddings and a rooftop bar with panoramic sea views.
The building would also house a drama school, vocational learning centre and registered day nursery.
A report to councillors says that in 2022, it was estimated an immediate essential cost of £2.5m was needed for structural, building and mechanical and electrical works.
It estimated a further cost of £3.5m over the subsequent 10 years, bringing the total cost to circa £6m, without including any major remodelling of the building.
A more recent estimate, depending on the scope of works, estimates the cost to be between £8m and £11m.
It is proposed that Thanet council allocates up to £80,000 to Westwood One Theatre to support the cost of more detailed work on design, construction costs and business planning. Funding will be drawn from the Winter Gardens’ original £300,000 which was allocated to the project from the Margate Town Deal.
A further £4m in ‘seed money,’ also from the Margate Town Deal fund, will follow. A report to councillors says Westwood One Theatre’s proposal commits pound for pound match funding to the council’s £4m Town Deal grant. This would increase the total funds available for the refurbishment and reopening of the Winter Gardens to £8m, significantly closer to the likely costs involved.
The report adds: “The outline business plan submitted by Westwood One Theatre sets out a vision for the Winter Gardens which aims to create a sustainable and profitable multi-use space.
“They plan to refurbish the Wintergardens to operate as a presenting live music and theatre with a mix of entertainment put on by touring companies including plays, musicals, dance, live music, heritage music acts and comedy.
“It would also aim to attract a range of other types of activity including conferences, corporate events, exhibitions, weddings and parties.”
The aim is to include:
- Two main concert/theatre/event spaces; The main hall and the Queen’s Hall.
- A roof top bar/restaurant and daytime café offering panoramic views
- 4 further bars
- A 100-place accredited drama school
- A Further Education/Vocational Learning Centre accredited by NCFE
- A 100-place Ofsted registered day nursery
Works will include essential repairs to the building, improving energy efficiency and installing new heating and ventilation.
There will also be a new accessible entrance to the building and improvements to the gardens.
The estimated timeline for the complete refurbishment and reopening is around two years from the point of agreeing a lease and grant agreement. By prioritising works to the main hall and Queen’s Hall these could be open in around 15 – 18 months, from the point of agreeing the lease.
The report says: “The panel recognised the level of potential risk with a project of the scale of the Winter Gardens refurbishment.
“Although Westwood One Theatre has successfully refurbished and reopened the Granville Theatre in Ramsgate, the Winter Gardens is a significantly larger, higher profile project with the additional complexities of the building’s grade II listing.
“It is therefore essential that both the council and Westwood One Theatre have assurance that the project is viable and deliverable.
“The council therefore commissioned Colliers to review the submitted business plan and advise about its viability and sustainability. In addition to business planning expertise, the review included input from a quantity surveyor to review assumptions about projected construction costs.”
The Winter Gardens was last refurbished in 1978, nearly 50 years ago.
Next steps recommend:
- Development of architectural plans to RIBA Stage 2 level, with input from a conservation architect, structural engineer and mechanical and electrical engineer.
- A linked specification of works with a cost estimate prepared by a quantity surveyor.
- A detailed accompanying business plan, prepared with the advice of an experienced business planner.
- Advice from a planning consultant and formal Pre-Application advice and engagement with the Design Review Panel, once the RIBA Stage 2 work is complete.
- A funding plan, with agreements in principle from parties that would provide equity or debt finance.
A two stage marketing campaign for a Winter Gardens operator launched in November 2023 resulted in only one Expression of Interest, with financial costs a recurring theme in the feedback.
In March 2024, Cabinet reallocated £4m of Margate Town Deal capital funding to the Winter Gardens and re-ran the marketing campaign. The council received three submissions, although one subsequently withdrew, stating that even with the £4m grant they considered the project to be unviable considering the upfront costs of the refurbishment necessary to reopen the venue.
Following meetings and due diligence, the council identified Westwood One as the preferred partner.
The report to councillors says one other option was considered for the council to use the £4m Town Deal funding to contribute to the cost of the refurbishment works at the Winter Gardens itself.
Officers explored this option and commissioned both a RIBA stage 0/1 architectural review and cost plan, together with a linked business plan.
The review identified some architectural options to reinstate, at least some of the original 1911 design features, including improved access arrangements and reinstatement of the views of the sea from the main hall. It also proposed to separate the main hall and Queen’s Hall so that they could be leased and operated independently.
It was estimated that £4m (excluding fees of an estimated £800k) could see the main hall reopened with an added cost of £3.8m allowing improvement to the access arrangements and capacity of the hall.
It was estimated refurbishment of the Queens Hall would cost £2.8m, plus fees and the gardens another £700k plus fees, taking the project to between £8m and £11m.
The council says a project for the local authority to reopen the main hall could be revisited if needed but it is not the preferred option.
Councillors have been recommended to commit to the project to refurbish and reopen the Winter Gardens, in partnership with Westwood One Theatre.
A spokesperson for Westwood One Theatre said: “This has the potential to be a very exciting new chapter for the Winter Gardens and for Margate. The vision we have for the venue’s transformation into a 365-day space will not only enhance the cultural landscape of the town but also drive economic growth and create new job opportunities.”
The issue will be discussed by councillors on the scrutiny committee on March 11.
The Pavilion and Winter Gardens took just nine months to build, costing £26,000, and opened on August 3, 1911.
When completed the Pavilion and Winter Gardens consisted of: a large Concert Hall, four entrance halls, two side wings and an amphitheatre.
Originally the stage could be viewed from both the main hall and the amphitheatre with the ability to enclose the stage in bad weather. The accommodation was for about 2,500 persons inside the building and 2,000 in the open air.
I’m amazed every time I read the original build time. Times were clearly different then.
The risk for this project is to high.
I think Westwood will end up bankrupt from this.
Servicing a loan of this magnitude is insane… there is a reason why people have withdrawn from this process.
Allowing this organisation to take it on is a shocker…
@Reality: Normally, you would be right. However, I’d say the Iranians have a knack for making a silk purse from a sow’s ear. I’ll bet you, they make a success of this; and good luck to them.
Why a 999 year lease ,a 10-20 year lease would be best
No bank would loan against a 10-20 year lease. Even building societies for private leasehold residences require a minimum of 80 years. After 60 years remaining mortgage and banks are not interested in loaning. At least with a 999 year lease should Westwood One go bankrupt after carrying out 25-50% of the restoration work it would make it more viable to the next leaseholder.
I think they all need their heads examined taking this on. The figures simply don’t add up servicing potential loans of £4million and the investment needed. There accounts on company house show a cash flow issue as per there previous accounts. This is all really laughable now, Of course cabinet will approve it after all they have no other real option except Thanet district council doing the refurb themselves which actually is the only real option as the cost of refurb is extortionate. I like the granville but I would run for the hills on this idea, the building is too far gone and you are better off focusing on your current business in Ramsgate.
I have a feeling that Labour have dropped this bombshell prior to an election thinking it will boost their popularity and this is simply not viable but at least the granville will get £80k advise for free use it wisely.
The door has already been opened in the article with the reference “ for the local authority to reopen the main hall”, though as it states not the preferred option. Way too many possible problems that could be uncovered for the council to even consider some sort of joint venture where the council acts as the backstop. It’s not hard to imagine that Westwood One’s financial input is going to be largely borrowing against or selling the Granville ( remember the accidental listing a while back, a good way to attract enquiries without it officially being on the market).
Incredibly risky project for any organisation lacking very deep pockets. Just the sort of Snafu TDC would get involved in. If TDC have money to chuck about it should be going to the theatre royal.
Thanet district council doing the refurb themselves which actually is the only real option…
TDC is the only real option IF you want third-rate work by clock-watching jobsworths supervised by fourth rate managers and planned and overseen by a council chamber full of less-than-useless bottom-feeders.
So they have no money of their own to match the Town deal money? That says a lot about being a success with their businesses in the past.
The risk is too high for Margate. TDC don’t be silly with the fly by night type, it all will come crashing down !
WOULD HAVE BEEN BETTER IT WAS SOLD TO THE FIRM THAT RUNS THE 02 IN LONDON. THAT WAS ONCE THE DOME.
as others have already pointed out , this building is past it , how can anyone warrant this kind of spend ? its of its time which sadly has come and gone , far better to demolish it and landscape the area. this would put a stop to more money being drained away.
Difficult but doable and the prize is golden.
We can only wish them every success!
With hindsight they should have also reallocated the cash put by for the white elephant that is Margate Digital College into this scheme as well. Another £6m into the pot as a grant which means we would be left with a state of the art entertainment centre for the future. Instead we will have a much delayed college in Margate High Street which will only take on courses relocated from Broadstairs College rather than brand new ones so the value for money will be close to zero.
You watch long enough and it will be sold off as unviable within a few years like the PIE factory in Ramsgate and the theatre in Broadstairs. Everything surplus is being offloaded now as the authorities need to make savings.
It’s all a waste of funding on business that would have been better spent on doing Margate’s own listed structures, shelters, parks, toilets and even the street places up with new seats, bins whatever, making the place look inviting and loved to visitors and residents alike. There was so much that could have been done with the Margate Town deal funding rather than waste it on private companies that just swallow it up and will sell up leaving nothing to show.
Not sure how you know what courses are being delivered at the new Margate Digital, since they haven’t been publicised. But I have heard that they will be entirely NEW courses actually, so once again you’re wrong Thanetian Blind.
Not sure why you’re so down on the project, but you really are constantly grinding an axe with it. Too late for anything to change at this point, so all your moaning is a waste of air.
How can they loose they will have the council tax payers of Thanet to fall back on as usual.
Are TDC just giving away our Winter Gardens to a private business along with ££Millions of pounds in Town Deal Funds. A thousand year lease on something that cannot possibly last that long is a giveaway. Did the company pay a nice price for the lease, I bet not. Do they have their own funds to pay the remainder of the refurbishment of the building?
There are so many questions needing answers before recommendation should even be thought of. Does this company have a good record going back years on building successful businesses and managing such businesses successfully?
How desperate are TDC to give the venue away along with the funding meant for Margate projects to improve the area for all? They do have a time limit to get all the projects going before the funders take the money back and that end is closing in soon. But don’t just give the building away along with the funding without guarantees of an income back for the town, not just the business owners. Margate should have something out of it, an income towards reducing council tax, public use of such building, etc. I don’t see that happening here with what has been proposed. They would be better selling it to a developer than giving it away. A 20 year lease with condition of renewal if the company have been successful would be more in line though if they must go down the route they have chosen.
‘Margate should get something out of it’. Right. How about increased tourism and money going back into the local economy?
These people have done a fantastic job with the Granville. Who are you to say they won’t do the same here?
So sick of seeing comments slating TDC – they’re damned if they do and damned if they don’t. If this move hadn’t been made, that would have been wrong, too.
It just seems very ambitious, running The Granville theatre and the large winter gardens! Would it not make more sense to let them have the Theatre Royal instead?
Yeah you are all right.
Probably best just left to fall into sorrowful ruins.
Don’t know why anyone bothers anyway.
It will end up in the sea anyway, everything will.