Forma snaps up Liverpool’s No5 St Paul’s for £35m
The Israeli investor’s acquisition of the 136,000 sq ft office marks the company’s first foray into England.
European fund manager Forma Real Estate has bought No5 St Paul’s Square in Liverpool from Abrdn for around £35m. The deal reflects a net initial yield of 6.5%.
The building is currently fully let but 28,000 sq ft is due to be vacated by Trinity Mirror North West, the parent company of the Liverpool Echo, and Lloyds Bank in the coming months.
Occupiers within the building include DWF, which occupies 42,000 sq ft across three floors, Denholm Logistics Group and Hays Recruitment.
The nine-storey building, which completed in 2008 and features 16,000 sq ft of ground floor retail space, currently generates an annual rental income of £2.4m.
“The purchase is in line with our strategy to acquire high quality, central business district, income-producing assets,” said Chris Taylor, Forma’s UK chief executive.
“We continue to target properties with the potential to add value through active asset management initiatives. In particular where we can invest capital to not only improve both the offer to tenants and their employees, but also to enhance the underlying asset’s sustainability and ESG credentials. This investment thesis, prioritising the UK’s regional office markets, will remain our focus for the remainder of 2022.”
Forma, which has offices in London, Amsterdam, Milan and Tel Aviv, made its UK debut with the acquisition of the 174,000 sq ft Aurora in Glasgow from M&G last year.
The investor recently bolstered its UK team with the appointment of Ben Dickins as head of asset management.
Dickins previously worked at Catella APAM.
Forma was advised by ACRE on the acquisition of No5 St Paul’s Square and CBRE advised Abrdn.
Worthington Owen is the building’s retained letting agent.