THE AA will relocate to new premises in Basingstoke after it put its historic headquarters in Basing View up for sale nearly a year ago, it has been revealed.

Fanum House was put on the market in December 2022 after the AA decided the 47-year-old building no longer meets its needs for a modern work environment.

The property was marketed jointly by Basingstoke and Deane Borough Council, as the freehold owner of the site, and the AA, which holds a long lease on the property.

Due to its age, Fanum House no longer provides the modern and sustainable offices that the AA needs, especially as the company has upgraded technology to meet the demands of its customers in the digital age and has adopted a hybrid home-office working model.

READ MORE: Fanum House, home to AA's headquarters, to be put on sale

In a turn of events during a cabinet meeting of the borough council held on Tuesday, October 10 a proposal to allow the company to surrender the lease and relocate to the former Mountbatten House site at Basing View was given approval. The building, which has now been named Plant, is being refurbished. 

Despite this, the surrender of the lease is not expected to take place until Wednesday, December 31, 2025. It has not been made clear whether the AA will remain at the premises until then.

Introducing the idea at the meeting co-leader of the council Cllr Gavin James said the landmark building is "currently not being used well".

He said the council were tasked with keeping the AA in Basingstoke, protecting the council's revenue and making sure the building is "readily available" for the council's "ambitious future plans".

SEE ALSO: Council leader has high hopes for AA's headquarters

Part of the agreement will mean that the company must rent more than 250 spaces at Fanum House car park from the borough council.

Explaining the proposal, he continued: "Essentially what it means is the AA will surrender their lease on the rent. They will remain in the borough. They will need parking so we will be supporting them by providing parking, initially in their own car park.

"But they will have to rent it because it won't be theirs anymore and the additional spaces that are available we will be able to rent out to other users.

"There is a market there which means we can cover our income and if an exciting opportunity comes up for the building we will just reprovision the parking.

"It means we won't have a boarded-up building that can be seen from everywhere around. The opportunity to develop a very significant site also becomes ours."

The news has been welcomed by councillors who are pleased to hear AA will be staying in the borough.

READ ALSO: AA headquarters Fanum House has gone on the market

Cllr Jacky Tustain, who leads the borough council's Labour group, said she is "really pleased" to hear that the company intends to continue its long history of operating from Basingstoke.

The former leader of the council Cllr Simon Minas-Bound, added: "I am delighted to hear the successful preservation of the AA's future in Basingstoke, a project that involved much effort during our administration.

"The recent approval of the final details is a great result for the borough. The impressive transformation of the Plant building, formerly a beloved but vacant office block known as the hanging gardens of Basingstoke, stands as a remarkable eco-friendly example of what can be achieved regionally.

"Moving forward, the primary focus will need to be identifying a fitting purpose for the former AA site, which presents numerous opportunities that the council administration needs to commit to achieving."

Cllr Andrew McCormick also welcomed the news and said that the council need to "attract more businesses to the town" to grow the economy and "breathe new life into Basing View and the town centre".

Residents in Chineham Shopping Centre were pleased when the Gazette informed some of them about the news.

John, who did not wish to share his surname, said that "anything that brings and keeps wealth in the borough is always good news".

He said it's good news that such a big employer will remain in the town, keeping a lot of jobs.

He said: "It would be good to see the building used as something else, I have heard something about it could be a university.

SEE MORE: Councillors react as Fanum House to be put on sale next year

"Basingstoke used to be booming and now so many businesses are leaving, it is just not the way it used to be which is sad."

He said "it is shocking" to hear the lease won't be surrendered until 2025.

A couple from Sherfield who didn't want to be named said that AA staying in the borough is great news.

The move will enable the borough council to explore a number of alternative uses and options for the eight-acre site.

There has been wide speculation about how the building could be used, including the idea that it could be an ideal place for a university.