Liverpool’s Martins Bank revival priced at £83.6m
A £22m grant from Mayor Steve Rotheram’s £2bn Liverpool City Region Investment Fund will help make palatable the price of turning the grade two star-listed building into Grade A offices.
Karrev’s £83.6m transformation of Martins Bank was announced at UKREiiF as one of the first projects to benefit from the fund, which itself was launched at MIPIM.
Having completed the required revies and checks, Liverpool City Region Combined Authority will decide on Friday whether to provide the grant for the project. Karrev will contribute £61.6m to the development.
If the grant is awarded, construction on the historic Water Street property will be lined up to begin in early 2027, according to combined authority documents.
Karrev’s plans for Martins Bank would see the building turned into 140,000 sq ft of Grade A office space, alongside meeting rooms and a food and beverage offering.
It is the office space that is so key, with combined authority officers noting the lack of Grade A space in their report about Martins Bank.
“Once completed, the building will bring to market a high-quality product of a type that has not been delivered in Liverpool City Centre for over 15 years,” they wrote in a report ahead of the combined authority meeting.
The grant, the report continued, is needed to the low rents of Liverpool. These rents are “significantly less than the amount of funding required to undertake the development,” it stated.
Rotheram voiced his support for the project, describing Martins Bank as one of the city’s “great architectural landmarks”.
“Bringing it back to life would not only protect an important part of our heritage, but create the modern, Grade A office space we need to attract new businesses, investment and well-paid jobs,” he said.
“Get that right, and the benefits to our local economy could repay this investment many times over.”
Rotheram added: “This is exactly why we launched our £2bn Investment Fund – to get ambitious projects like this off the ground by using public money to attract much greater private investment.
“With £22m of backing from us helping to unlock more than £60m from the private sector, we can turn one of Liverpool’s most iconic buildings into a place that will help make our region the best place in the country to grow up, grow a family and grow a business.”
As part of the grant funding agreement, Karrev would sign on to the city region’s social value goals. At this point, the project is being lined up to deliver a 40% social value return on investment, with 20% of project cost needing to be spent in the local economy.
Karrev managing director Julien Buronfosse welcomed the funding support and emphasised the company’s long-term ambitions for the property.
“Martins Bank is an extraordinary building with an important place in Liverpool’s architectural and commercial history, and we recognise the responsibility that comes with bringing it back into use,” he said.
“Our ambition is to create a best-in-class workplace that respects its heritage while delivering the quality, flexibility and sustainability that modern businesses expect.
“We are making a significant long-term investment in Martins Bank and intend to retain and operate the building following its transformation. The proposed support from the Liverpool City Region Combined Authority would help us unlock its potential and give this landmark building a sustainable future.”
Karrev acquired Martins Bank in 2021 for £11.5m. Plans were approved for its transformation in 2022, but were paused two years later after the exit of development partner Kinrise and main contractor Lendlease. At that time, Karrev put its focus on another office refurbishment project, the £33m revival of Sunlight House in Manchester. That scheme completed last year.
Meet the movers and shakers of Merseyside. Book your ticket to Liverpool City Region Development Update.
