Liverpool Passport Office up for sale for £40m
Real estate private equity firm Palm Capital has put 101 Old Hall Street on the market as it looks to reap returns from its two-year investment in the building.
The 135,600 sq ft office property in Liverpool city centre is the home of HM Passport Office and the UK’s Visas & Immigration Department, which together occupy 84,500 sq ft – or 64% of the building – on a 10-year lease renewed in July.
Palm Capital bought the property in October 2018 from investment manager Warburg HIH Invest Real Estate for an undisclosed sum.
It has since led a £10m refurbishment of the building and regeared existing leases – including the extension of the Government deal in July, and the lease with Diligenta Group, a subsidiary of steel conglomerate Tata Group that occupies the three remaining floors.
Consultancy CBRE has been appointed by Palm Capital as the sales agent for 101 Old Hall Street and is understood to be in talks with several interested parties, mainly overseas investors with a UK office or UK asset management arm.
A deal is not expected for another 2-3 weeks. CBRE declined to comment.
101 Old Hall Street is one of only four passport offices, and one of only two Home Office buildings in the UK.
The property commands a passing rent of £20.40/sq ft and the £40m price tag represents a net initial yield of 6.72%.