http://www.liverpoolecho.co.uk/
1 AUG 2017 ALISTAIR HOUGHTON
Farhad Moshiri’s purchase of the Royal Liver Building has helped spark a Liverpool property boom, property giant CBRE says.
Global property expert CBRE – which handled the £48m sale of the Liverpool landmark and is working with Everton on its new stadium – says the city has become a “hot spot” for commercial property over the past 18 months, with deals worth more than £300m.
And CBRE says Mr Moshiri’s Royal Liver Building deal was “pivotal” in helping the city become more attractive to overseas investors.
The building was put on the market for the first time in its history last year, with a £40m price tag.
In February it was sold to a consortium led by Corestate Capital for £48m . The ECHO later revealed that Everton’s majority shareholderFarhad Moshiri was Corestate’s partner in the deal .
CBRE said: “Corestate’s decision to invest in Liverpool shows its confidence in the city’s economy – and has sparked a wave of interest from other global investors.”
Another key sale over the period was the £45m sale of the Exchange Flags office complex behind the Town Hall. CBRE also worked on that deal – and is also working on the £2bn Knowledge Quarter regeneration scheme.
The firm, which has its Liverpool office in St Paul’s Square, is part of Everton’s advisory team on the Bramley Moore Dock stadium plan.
CBRE is now working with Corestate and Mr Moshiri on plans to renovate the remaining office space in the Royal Liver Building. They want to upgrade those offices to the “Grade A” standard needed to attract new businesses.
Neil Kirkham, director of CBRE’s office agency team, said Liverpool’s strong legal and creative sectors, as well as its universities, were helping the city become more popular with investors.
He said: “CBRE has transacted approximately £250m worth of property across Liverpool and Merseyside in the past two years. It is an exciting time to live and work here, as illustrated by our pipeline of projects.
“Interest from Investors and occupiers have reached unprecedented levels in recent times, a reflection of the significant rental growth potential due to the lack of supply and the excellent demographic and economic factors to retain and attract talent.”
CBRE also says the Royal Liver Building deal shows finance firms are now more likely to back big deals in Liverpool.
Victoria Hill, regional director at CBRE’s debt and structured finance division, said: “As recently as a year ago, there would have been fewer lenders and terms would have been more conservative as it (the Royal Liver Building) was a large lot size for the city. However, the city now has robust demand and supply dynamics for lending, and this transaction has put Liverpool firmly on the map.”