The £40m sale of Twenty Chapel Street, a prime office investment in Liverpool, has completed. The purchase, made by an overseas investor, reflects a net initial yield (NIY) of 6.29% and a capital rate of approximately £250psf. The building was sold by BA Pension Fund.
Twenty Chapel Street comprises 155,391 sq ft of high-quality office accommodation across 13 storeys and was built in 2007. It is over 90% let to a range of strong tenants, including Liverpool Football Club, Barclays Wealth, RSM and Ernest & Young.
Located in the commercial district of Liverpool, Twenty Chapel Street features a contemporary exterior and offers views of the River Mersey. The large floor plates offer a flexible and efficient working environment and the building was recently subject to a refurbishment of the common areas, including the construction of a new café facility on the ground floor.
In addition, Allsop were involved with the sale of First Street Manchester, a multi-let retail and leisure investment in the heart of the city centre, which the same client acquired this year for £11.5m, reflecting a net initial yield (NIY) of 6.63%.
Jeremy Hodgson, Partner, National Investment at Allsop, said: “Despite the current challenging market conditions, Twenty Chapel Street represented a great opportunity to buy one of the best Grade A office buildings in Liverpool that will provide excellent potential for strong rental growth. The calibre of tenants that already occupy the building demonstrates the demand for high-quality office space in the city”.
Allsop acted on behalf of the purchaser. The vendor British Airways Pension Fund were represented by Morgan Williams.
