Pall Mall October 2019

Council pumps more cash into £200m Pall Mall

Charlie Schouten

Liverpool City Council is to add further funds to help the remediation of the city centre site, set to host up to 400,000 sq ft of commercial space and public realm.

With Leonardo Hotels already lined up to take the hotel and two major occupiers showing an interest in the office space, the city council has provided an update on the £200m project’s progress, which is being developed by Kier Property and CTP.

Remediation works are currently being carried out on the plot; the council secured £3.5m from the Liverpool City Region Combined Authority’s Single Investment Fund to clear the site for development. Willmott Dixon was appointed via the Scape framework to carry out the works.

However, since remediation works started, a number of issues including asbestos in the ground were identified, which the council said “are not uncommon” for jobs of this nature.

These have added additional costs for the site clearance, and as a result, the council is proposing to draw down an additional £350,000 from the Combined Authority, along with nearly £160,000 of its own money, to fund the completion of the remediation, which now has an estimated total cost of £4.3m.

Overall, the council expects to fund its contribution to the scheme through £410,000 of unsupported borrowing. Money from the SIF is paid retrospectively, meaning to date, the council has spent £3.8m from its capital budget to fund the works.

Willmott Dixon’s remediation works have been completed with the next phase including the addition of a substation to support the wider scheme. This substation is due to be completed in June 2020, which will allow the main build to begin.

A hybrid application for the three-acre city centre site was approved in October by the council; this includes full permission for a 112,000 sq ft office and public realm, along with outline permission for hotel and two further offices.

Place North West revealed Leonardo and Kier had agreed heads of terms on a 281-bedroom hotel at the site in August this year.

The city council also said there were “advanced discussions” with occupiers for a pre-let, although Place North West understands a deal is not imminent.

Two major occupiers with a 100,000 sq ft requirement are understood to have looked at the building. Rathbones is on the hunt for a new office in Liverpool, while Place also revealed in October that BT had shortlisted the development as part of a wider search for a 100,000 sq ft hub in the city.

A main contractor for the offices or hotels is yet to be appointed but is likely to be chosen via a tender list from Liverpool City Council. Work on the hotel, offices, and public realm is due to begin next summer.

Future phases, covering land stretching to Leeds Street, are likely to include a wider mix of uses including residential and a multi-storey car park.

The additional funding is set to be signed off by Liverpool City Council’s cabinet next week.

Your Comments

Read our comments policy here

Essential for the city’s continued growth; a top priority.

By Liverpolitan

LCC using the Scape direct award framework again. No competition / lazy procurement


This is Mission Critical. Good on the council for staying the course and driving this forward.

By Sceptical

I was asked (politely to be fair) not to take any photographs around there as it was private and I need permission first. Not a problem, but I thought private property meant privately funded? I was taking a photo of a friend incidentally.

By Jane Doe

If it was accommodating some much needed investment then maybe but to accommodate existing businesses already in the city then it needs to stand on it’s own two feet

By Mike's mate

This is whats needed. Offices and jobs for our children and our childrens children. We are a big city and it feels like a big city. We must not let them hold us back from being a major competitor to the city down the road. We want offices and we want them now.

By Mary Mullarkey

Liverpool is a major player in the UK’s economy, all investment is very welcoming @Jane Doe taking a picture ? Dont make us laugh, troll

By Anonymous

@Jane Doe. A lot of public spaces that are owned privately have the same policy, though it`s usually where there`s offices you`ll meet such paranoia..Move off the privately owned area on the a public street, and use a good zoom. Many public spaces are privately owned. Liverpool one for example is owned by the Grosvenor Group.

By Hobby photographer

Where is this in relation to the Everton Stadium?

By Jude

And like magic the supportive comments appear. When is someone going to say this is a massive folly that stole a public park from the workers and residents of Liverpool?

By Madeupname

As this is privately owned then accept £200,000 000 off the working poor of liverpool and who can blame them.

By Anonymous

Madeupname, well guess you have said its a massive folly, but that’s a minority view over emphaised by social media. It’s an essential project for the city otherwise firms like BT and Rathbones may well move out to Manchester and zero chance of more firms moving in. Liverpool needs more good quality jobs for its citizens and it needs more decent office spaces to house them. The area of grass was just a temporary remediation from the late 1980s on the site of the old station, not some historic public park.

Worth noting there were more letters of support for the planning application than letters against despite the big Twitter campaign against it. The focus of the campaign should have been around making sure the public realm area of the development is of decent quality and supports varied uses.