20 Chapel Street has been bought by a consortium of Far East investors and is a handsome return for the British Airways Pension Trustees who acquired the building for £20m in 2016. Tony McDonough reports

One of Liverpool’s biggest office buildings has changed hands in a £40m deal.

20 Chapel Street, which comprises 155,391 sq ft of office space and is home to companies such as Liverpool Football Club, Barclays Wealth and accountancy firm EY, has been acquired by a consortium of Far East investors, represented by Allsop.

The deal, which represents a net initial yield of 6.3%, is a handsome return for the British Airways Pension Trustees who acquired the building for £20m in 2016 from original developer Rumford Investments. That deal was secured by asset management firm Canmoor

Located in the commercial district of Liverpool, 20 Chapel Street features a contemporary exterior and offers views of the River Mersey. It offers large floor plates and the building was recently subject to a refurbishment of the common areas, including the construction of a new café facility on the ground floor. Just 7,000 sq ft remains vacant.

Jeremy Hodgson, partner, national investment at Allsop, said: “Despite the current challenging market conditions, Twenty Chapel Street represented a great opportunity to buy one of the best office buildings in Liverpool that will provide excellent potential for strong rental growth.

“The calibre of tenants that already occupy the building demonstrates the demand for high-quality office space in the city”.

British Airways Pension Fund was represented by Morgan Williams.