City centre office block changes hands in £40m deal
One of Liverpool’s most prominent office developments has been acquired for £40m.
The waterfront 20 Chapel Street, which is home to companies including Liverpool FC and Appreciate, the former Park Group, has been bought from the British Airways Pension Fund by a group of Far East investors.
Constructed in 2007, 20 Chapel Street comprises 155,391sq ft of high-quality office space over 13 storeys.
British Airways Pension Trustees acquired the building for £20m in 2016 from the developer Rumford Investments.
It is currently more than 90% let – just 7,000 sq ft remains vacant – and the deal represents a net initial yield of 6.3%.
The purchasers were represented by Allsop, whose partner for national investment, Jeremy Hodgson, said: “Despite the current challenging market conditions, Twenty Chapel Street represented a great opportunity to buy one of the best Grade A 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.”
Allsop said the building’s large floor plates offer a flexible and efficient working environment.
Its common areas were recently refurbished, including the construction of a new cafe on the ground floor.
British Airways Pension Fund was represented by Morgan Williams.