Last week No 5 St Paul’s Square was put up for sale with a price tag of £34.8m and 101 Old Hall Street changed hands for £39m – now another Liverpool office building is up for sale. Tony McDonough reports
An office building in the heart of Liverpool’s commercial district has been put on the market with a price tag of £18.7m.
A report on Business Desk says investor Shelborn Asset Management is looking to sell No 1 Tithebarn, which it acquired in a £7m deal in 2016. Built in 1980, the property comprises 112,805 sq ft of commercial space.
It comes just a week after No 5 St Paul’s Square, a 136,000 sq ft block in Liverpool, was put on the market by Abrdn for £34.8m. That news came shortly after it was revealed that 101 Old Hall Street, which houses the HM Passport Office, had been sold by Palm Capital to London investor Priory RE for £39m.
If Shelborn secures the asking price for No 1 Tithebarn, which also houses the Old Hall Street entrance to Moorfields station, that would represent a net initial yield of 8%. Net initial yield is the annual rental income expressed as a percentage of current capital value.
Shelborn has tasked agents at Knight Frank with securing a buyer for the property which last underwent a full refurbishment in 2008. A partial upgrade has taken place in more recent times with work done on some floors, reception and common areas.
In 2019 accountancy firm BDO took 25,000 sq ft, opening up its second base in the city centre. And, last month, law firm High Street Solicitors took 14,875 sq ft of space, relocating from the Cotton Exchange. It intends to create 80 new jobs, more than doubling its current workforce. Headline rents at the building are £17 per sq ft.
A Knight Frank spokesperson told Business Desk: “We are already seeing more requirements from both occupiers and investors in Liverpool, as most businesses return to the office, as their primary work place.
“No. 1 Tithebarn has had some good success in terms of new lettings over the past couple of months, which gives investors confidence. With the final letting in legals, the building will be fully let to a number of blue chip businesses and we expect to receive a good level of investor interest, with Liverpool yields offering a significant discount to Manchester.”