Shelborn Asset Management has completed the sale of India Buildings, Liverpool, for c. £125 million to LGIM Real Assets (Legal & General). Global real estate adviser Knight Frank advised on the disposal.
The Grade II listed landmark building in the centre of Liverpool is currently undergoing redevelopment. HMRC announced in August 2017 that they had pre-let 270,000 sq ft. Worthington Owen advised Shelborn on the letting. The UK Government will occupy 10 floors and will be moving around 3,500 people into the building in 2019. Shelborn will continue to manage the property as it undergoes redevelopment.
Constructed between 1924 and 1932, the landmark asset comprises a total of 500,000 sq ft, arranged over ten floors above ground and basement and sub-basement levels. One of the most striking features of the building is the Holts Arcade, a barrel-vaulted retail arcade which runs the length of the building. India Buildings also has its own entrance to James Street underground station.
Brian Rabinowitz at Shelborn Asset Management, said: “We are pleased to have completed the sale of India Buildings, an iconic development in the heart of Liverpool. We will continue to have an ongoing role in the development and look forward to working with both Legal & General and HMRC to deliver what we are sure will be an outstanding hub blending the redevelopment of a historic Grade II listed building alongside the demands of 21st century functionality.”
Adam Kerr, Head of Annuity Transactions, LGIM Real Assets, said: “We are proud to have played our part in securing this investment which will make a meaningful impact on the regeneration of this part of the city, helping to create social and economic growth through the creation of jobs and breathing new life into this heritage asset. The letting to the UK Government is also one of the largest ever office lettings in the north of England and continues the significant investments in Liverpool which has lead the renaissance of the city over the last 10 years. At LGIM Real Assets we are committed to improve our UK cities and this is the type of deal that can be a catalyst for positive change.”
Joshua Morris at Knight Frank, said: “We are delighted to be involved in the sale of this truly iconic office building which attracted interest from both UK and overseas institutional investors. The redevelopment of India Buildings will have a positive impact on the immediate area and plays a part in the wider revitalisation of Liverpool’s office core. The commitment by HMRC and investment by Legal & General are strong indicators of the increasing sentiment we are witnessing in Liverpool as the market continues to strengthen”
The landscape of the Liverpool office market has changed significantly over the past three years. This has been driven by the conversion of more than 1.5 million sq ft of office stock into hotel and residential accommodation. As a result, the total available stock has fallen from 2.3 million sq ft to c.600,000 sq ft with Grade-A availability now at only 70,000 sq ft. With no new speculative development coming through and increasing occupier demand, the rental growth in Liverpool will continue.
Mason Owen acted for Legal & General.
