Liverpool property bought for £6.4m

CUSTODIAN REIT, the Leicester-based property investment company, has bought a 34,686sq ft unit on Hanover Street, Liverpool, opposite retail complex Liverpool ONE for £6.4m.

The property comprises the ground and first floors beneath a Premier Inn hotel, with other nearby occupiers including Nando’s, John Lewis, Home Bargains, Tesco, Subway, Ted Baker and Primark.

It has a large restaurant let to Ocean Park (trading as Tai Pan) and a health centre let to Liverpool Community Health NHS Trust, on leases expiring on April 15 2038 and October 31 2023 respectively. The current passing rent is £474,867 a year reflecting a net initial yield of 6.96%.

Richard Shepherd-Cross, managing director of Custodian Capital, said: “We are delighted to have acquired this modern restaurant and health centre located in a prime area of Liverpool city centre, adjacent to Liverpool ONE, in an established bar and restaurant pitch.

“We believe the property has strong reversionary potential and that further diversification of the portfolio into both leisure and health care adds an additional positive dimension to this acquisition.”