Latest planning decision means Kier Property and CTP have now secured planning consent for the whole of phase 1 of the Pall Mall scheme in Liverpool’s commercial district. Tony McDonough reports
Planners have give the go-ahead to a 13-storey, 240-bed hotel in Liverpool’s commercial district, part of the £200m Pall Pall mixed-use scheme.
It means joint developers Kier Property and CTP have now secured planning consent for the whole of phase 1 of the scheme, which also includes a 102,000 sq ft office building and new public realm. It is believed Leonardo Hotels has been lined up as the operator of the new hotel.
However, the big prize for the commercial district is the plan to create its first grade A office space since the completion of St Paul’s Square. The pipeline for grade A space has now dried up in the city, a signifiant barrier to attracting new occupiers.
Developers for Pall Mall, as well as the city council which is backing the scheme, are hopeful of securing a pre-let, allowing the first phase office project to go ahead. The eventual aim is to bring 200,000 sq ft to the market.
Significant requirement reported for the city include BT, which is seeking 100,000 sq ft, shipping line Maersk, which is looking for 15,000 sq ft and Firesprite, seeking 20,000 sq ft. However, the coronavirus crisis has created huge uncertainty for the coming months.
The latest Big Nine report, published by property consultancy Avision Young, says occupational demand has significantly diminished since COVID-19 put the UK on lockdown and this is expected to have a substantial impact on deals in Q2 and Q3 of 2020.
Leigh Thomas, managing director for Kier Property, said: “We are delighted to announce this news, it is another great milestone for the Pall Mall development situated in the heart of Liverpool’s commercial district and it comes at a crucial time in the sites’ regeneration.”
David Topham, chief executive of CTP, added: “We look forward now to commencing the construction stage following the recent completion of the remediation works, which completed earlier this year.”
Kier and CTP were formally selected as Liverpool City Council’s development partner and have been working on detailed proposals since 2017. Liverpool Mayor Joe Anderson said: “This announcement, coming just days after the Sciontec deal, is another welcome vote of confidence in Liverpool’s appeal and points the way ahead for how our economy will grow once the COVID-19 pandemic is behind us.”