Lone Star has sold a 360,000 sq ft office complex in Liverpool to Shelborn Asset Management for £42m – the city’s largest office investment deal this year.
The previously distressed office complex Exchange Flags was acquired by Lone Star as part of its £5.2bn purchase of the Project Rock and Project Salt loan books from IBRC in 2014. The loan against the property was included in the sale as previous owner UK Land and Property was in administration.
The complex had 140,000 sq ft vacant when Lone Star acquired it, but is now circa 90% let to tenants including marine services firm Brookes Bell, outsourcing company Capita, and engineering consultancy White Young Green. Quoted rents are £16.50 per sq ft.
The complex, which comprises Horton House and Walker House, has an annual rental income of £4.4m.
Shelborn Asset Management has acquired the buildings on behalf of a group of South African investors. It is understood the same investors were behind the purchase of Liverpool’s India Buildings and No 1 Tithebarn earlier this year.
This means they now control 825,000 sq ft of offices in the city, with HM Revenue & Customs close to signing to occupy the majority of India Buildings for a giant office hub.
CBRE advised Lone Star; Shelborn Asset Management was unrepresented.
See also: GPU selects Liverpool HMRC hub
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