The sale of a landmark building in Southampton has attracted scrutiny over whether the best deal was secured by the council.

Southampton City Council acquired the freehold for One Guildhall Square in 2010 in a deal worth £25million.

Earlier this year, the University of Southampton bought the city centre site from the council for £12.75million net of VAT.

The sale was the first carried out as part of the local authority’s asset development and disposal programme.

Over the next three to five years, the programme aims to generate an income of £15million a year through sales. It will also explore regeneration opportunities for certain sites the council already owns.

At a council meeting on July 17, opposition members raised the disposal of the glass-fronted building in Above Bar Street.

Addressing the Labour executive, Conservative group leader Cllr Peter Baillie said: “The key with One Guildhall Square is whether actually, you have got best value and I think that’s the crux and whether it’s done here or done it in private session, there needs to be a feeling from members on this side that actually the council did get best value.”

He added: “There is a big worry we haven’t got best value and you are sending out entirely the wrong signal.”

Labour cabinet member for finance and corporate services Cllr Simon Letts said: “Before disposing of One Guildhall Square we commissioned independent advice from a respected local property firm and that advice clearly suggested that disposal was in our best interest and it quoted in that advice a particular valuation that we would expect.

“I’m pleased to tell council that we exceeded that valuation by a significant amount in the final disposal.”

Earlier at the meeting, Conservative councillor Sarah Powell-Vaughan asked Cllr Letts how much would it have cost to bring One Guildhall Square up to a higher office space certification. She said this would have enabled the council to secure a higher sale price.

Cllr Letts said discussions take place about remedial works when you transfer the ownership of a building.

“This happens with every commercial lease, so which side of the balance sheet it appears on is not really an issue,” Cllr Letts said.