An office block in Liverpool City Centre's business district has been sold.
Earlier this year, it was reported that Number 5 St Paul's Square had been put up for sale by investors abrdn for just under £35m. The building was originally built in 2008 and covers 136,000 sq ft over ground and seven upper floors. European Fund Manager Forma Real Estate (Forma) has now completed the acquisition of the building, its second in the UK after launching last year.
Just off Old Hall Street, Number 5 St Paul's Square is currently fully let to tenants including DWF, Hays Recruitment, Bank of Scotland and the Liverpool ECHO and its parent company Reach PLC. The ECHO was based over the road in Old Hall Street from 1973 until 2018 when the building was sold and staff moved into the new offices in St Paul's Square.
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Chris Taylor, UK CEO said: “We are delighted to have completed the acquisition of 5 St Paul’s Place. The purchase is in line with our strategy to acquire high quality, central business district, income producing assets. We continue to target properties with potential to add value through active asset management initiatives in particular those where we can invest capital to not only improve both the offer to tenants, and their employees, but also to enhance the underlying asset’s sustainability and ESG credentials. This investment thesis, prioritising the UK’s regional office markets, will remain our focus for the remainder of 2022.”
The property was marketed for sale at a price of £34.8M reflecting a net initial yield of 6.5%. Forma were advised by ACRE on the acquisition of 5 St Paul’s Place. CBRE advised abrdn on the sale.
Earlier this year another nearby office building was sold. The 101 Old Hall Street building, which famously houses Liverpool's Passport Office, was sold by Palm Capital to London-based investor Priory RE for £39 million in February.
The building is well known for housing the HM Passport Office and the UK's Visa and Immigration Department, which together occupy 84,500 sq ft of the building in Liverpool's business district - accounting for 64% of the total floor space.
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