Wirral Council says it is in discussions with a ‘significant prospective occupier’ interested in taking office space at its £75m Birkenhead office complex. Tony McDonough reports
Wirral Council says it is in talks with a potential occupier interested in taking space at its recently completed office complex in Birkenhead, offering a significant cost saving for the authority.
Comprising almost 150,000 sq ft of office space, the Mallory and Irvine buildings were completed by Wirral Growth Company in 2023 and funded by Canada Life to the tune of £75m. This is a 50:50 partnership between Wirral Council and Muse.
Wirral Council has occupied 65,447 sq ft of Mallory. However, commercial property agents have struggled to find tenants for the remaining space in Mallory and the whole of Irvine.
Terms of the deal with Canada Life means the council is on the hook for the rent on both buildings, totalling more than £2m a year, unless other paying occupiers can be found.
However, a report set to go to the council’s Policy and Resources Committee on December 17 seeks permission for the “the Interim chief executive to negotiate and finalise the grant of an appropriate sub lease to an appropriate occupier”.
The report said: “Good progress has been made regarding negotiating the letting of assets. It is therefore anticipated that the council may have to take a decision regarding letting space in the near future.”
It adds that “at the time of construction and now the two buildings are, with few exceptions, the best new office spaces on the market in the North West of England”.
Council leader Paula Basnett said: “This is momentous news for Birkenhead and the town centre and a real vote of confidence in its future.
“Mallory and Irvine, are extremely high quality office space and the news that discussions are well advanced with a significant prospective occupier major company which is keen on moving there will undoubtedly have a huge impact.
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“It is still early days and clearly there are still some very practical steps we need to take, but when we are able to make further announcements we will do so.”
Wirral Council has also disposed of two former school buildings in Birkenhead – the 32,700 sq ft Hamilton Building and the 42,200 sq ft Conway Centre on Conway Street. Liverpool-based asset manager Accelerate Property Group has acquired both.