Liverpool’s 7 Water Street hits market with £7m guide price

Home to steak restaurant Gaucho and aparthotel IStay, the grade two-listed former bank building in the heart of Liverpool city centre has recently been renovated.

Described in the sales brochure as a “trophy asset”, 7 Water Street boasts 30,900 sq ft across five storeys. It is owned by the special purpose vehicle Aqua Commercial. Aqua Commercial counts Anthony Baines as its sole director, according to Companies House.

Aqua Commercial is accepting offers of more than £7m for the building, which reflects a 6% net initial yield after factoring in purchaser costs. This price also equates to a capital value of £226/sq ft.

The building has two entrances, 7 Water Street and 3 Fenwick Street. Gaucho welcomes customers from Water Street, while guests at IStay enter through Fenwick.

The two tenants contribute a total of £450,000 in rent and are on long-term leases. Gaucho’s lease for its 13,500 sq ft space has a little less than 24 years until it expires, while IStay’s lease has roughly 10 years left.

Shaun Skidmore of CBRE and Nick Huddleston of LBL Real Estate are the joint marketing agents for the property.

Skidmore described 7 Water Street’s sale as “a great opportunity to acquire a prime city centre leisure investment in the city’s premium bar restaurant and leisure destination”.

He continued: “It is a substantial grade two former bank building which has recently been restored and fully fitted throughout, with the stunning Gaucho bar restaurant along with Istay aparthotel and offers a hands-off investment.”