It’s a niche property with very few potential buyers and they probably overpaid. The UK property market has cooled a little and isn’t necessarily as attractive to the sort of oligarch or hospitality company most likely to buy it. It will also have a very high annual maintenance bill due to its age; it’s possible they found more work which needed doing which hit the value and hanging onto it would have had a non-trivial cost regardless. It’s also possible they clawed some money back from selling off some parts separately (there was an apartment in a Wytham Abbey outbuilding for sale last year, though I’m not sure EA ever owned that building).
It’s not particularly unusual for buyers of niche high value property to make large losses when under a little pressure to sell, especially if they bought into the property’s sentimental appeal rather than its costs. The people that very confidently dismissed the idea that Wytham would be a losing venture because don’t you guys know what a capital investment is understood the market dynamics and operational costs less well than many of the critics.
Presumably CEA did some sort of estimate of utilization and operational costs to justify the funding bar; the decision to shutter it fairly early based on cost benefit analysis suggests that those estimates proved optimistic. It would be interesting to see how much they missed by, and whether they factored alternatives like hosting at the local university into either of the assessments.
The venue selection process between 3 publicly listed and immediately available properties in the range £6-£15m sounds rather trivial as described considering the expense, particularly in a culture which encourages rigorous analysis of the relative effectiveness of much smaller donations.
It’s a niche property with very few potential buyers and they probably overpaid. The UK property market has cooled a little and isn’t necessarily as attractive to the sort of oligarch or hospitality company most likely to buy it. It will also have a very high annual maintenance bill due to its age; it’s possible they found more work which needed doing which hit the value and hanging onto it would have had a non-trivial cost regardless. It’s also possible they clawed some money back from selling off some parts separately (there was an apartment in a Wytham Abbey outbuilding for sale last year, though I’m not sure EA ever owned that building).
It’s not particularly unusual for buyers of niche high value property to make large losses when under a little pressure to sell, especially if they bought into the property’s sentimental appeal rather than its costs. The people that very confidently dismissed the idea that Wytham would be a losing venture because don’t you guys know what a capital investment is understood the market dynamics and operational costs less well than many of the critics.
I mean, if you want to buy up a pretty hotel with a bus service to Oxford, you can get more bedrooms for less money than Wytham was sold for, never mind what it was bought for https://www.rightmove.co.uk/properties/739022765321024#/?channel=COM_BUY
Presumably whoever approved the original donation to buy Wytham Abbey did understand these considerations and decided to go through with it anyway?
Presumably CEA did some sort of estimate of utilization and operational costs to justify the funding bar; the decision to shutter it fairly early based on cost benefit analysis suggests that those estimates proved optimistic. It would be interesting to see how much they missed by, and whether they factored alternatives like hosting at the local university into either of the assessments.
The venue selection process between 3 publicly listed and immediately available properties in the range £6-£15m sounds rather trivial as described considering the expense, particularly in a culture which encourages rigorous analysis of the relative effectiveness of much smaller donations.