Liverpool completes Cunard deal

LIVERPOOL City Council has completed its acquisition of the Cunard building on the waterfront.

It wants to relocate council staff from two other offices and also use the building as a cruise liner baggage handling and check-in centre once again.

It said the move will cut its accommodation bill by £1.35m a year and generate annual rent of £1.75m.

As part of the plan the council would sell Millennium House on Victoria Street, with staff moving to the Cunard Building or vacant offices within Municipal Buildings on Dale Street, and exercise a break clause in the lease on the 10th floor of The Capital building on Old Hall Street. This would allow around 100 Liverpool Vision and Marketing Liverpool staff to relocate to the Cunard Building.

The cost of the building, which is being sold by the Merseyside Pension Fund, was not disclosed. It is acquiring the leasehold with an option to buy the freehold for a nominal fee in five years.

Mayor of Liverpool, Joe Anderson said: “This is a really important deal for the city council which will save us a significant amount of money, reduce the number of sites we occupy in the city centre and create a new income stream which can be ploughed back into delivering important services.

“This is part of our Invest to Earn strategy to find new ways of cutting costs while at the same time bringing in money which will enable us to continue to deliver vital services in the face of the massive cuts imposed by central Government. The building is located on our world famous waterfront and we will be maximising its potential as a location for receptions, exhibitions and cultural events.”

The council said it is paying for the lease from its reserves, meaning no borrowing costs or impact on frontline services. Around 110,000 sq ft of space is currently available to let which means the council expects to see a return on its investment within 10 years.

The council was advised by law firm DWF while the pension fund was advised by CBRE and Brabners.