Starwood Capital Group has put Liverpool’s largest office building up for sale.
CBRE has been instructed to market the freehold for the Capital Building for offers around £90m – a net initial yield of 7%.
The 13-storey, 425,000 sq ft building occupies a 3.5-acre freehold site in the centre of Liverpool’s business district.
It is predominantly let to the government with a WAULT of 21 years to earliest termination and serves as one of three major processing hubs for UK Visas and Immigration. The Secretary of State for Levelling up, Housing and Communities accounts for almost 62% of the headline rent, having recently re-geared and expanded in the building.
Other tenants include Royal & Sun Alliance, NCP and Tesco.
Around 19% of the headline rent is subject to annual RPI-linked rent reviews and the building comes with a passing rent reflecting £14.60 per sq ft.
Starwood had planned to list the office building on IPSX in 2021 and plans appeared to still have the go-ahead in 2022.
Over the past five years, Starwood has invested around £25m into the office to offer grade-A space and new amenities.
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