Victoria Square (VSWL)

Victoria Square was conceived as a major town centre regeneration project for Woking, intended to create a new retail, leisure, and residential hub. The development was managed through Victoria Square Woking Ltd (VSWL), a council-owned company.

The concept was approved in 2015 and construction began in 2016. The development includes a Hilton DoubleTree hotel, residential apartments, a new public square, and retail and leisure space including a Vue cinema.

Costs escalated dramatically throughout the construction period, driven by design changes, construction complications, and delays exacerbated by the COVID-19 pandemic. The total cost ultimately exceeded £700 million, far beyond original projections.

The current value of the completed development is estimated at between £205 million and £350 million, representing a potential loss of between £350 million and £490 million for the council and its creditors.

The Grant Thornton Public Interest Report identified Victoria Square as a central example of the council's failure to manage commercial risk, noting inadequate governance, insufficient scrutiny of cost increases, and a lack of proper financial controls.

Victoria Square remains open and operational, but the financial loss it represents is a core component of the council's overall deficit and a key reason for the Section 114 notice.

The combined annual interest owed from VSWL and the Thameswey group is approximately £46 million per year. However, rental income from the Hilton hotel, residential apartments, and commercial tenants is insufficient to cover financing and holding costs. The council is not projected to break even on Victoria Square until 2062 — 11 years later than originally forecast.

The 189-room Hilton hotel, which opened in October 2024, is managed by Legacy Hotels & Resorts on an asset-managed basis. Specific lease terms and rental payments to the council have not been publicly disclosed. When units sit empty, the council as landlord must cover service charges and business rates, adding further costs.