Advised by Mason Owen, Palace Capital has bought the freehold interest of the 70,000 sq ft One Derby Square in Liverpool from Hong Kong-based real estate investor Mordril.
The building fronting on to Derby Square, Lord Street, and Castle Street has been sold by Mordril to Palace Capital for £14m. The building includes six retail and leisure units on the ground floor, and 47,500 sq ft of offices on the upper four floors.
It produces around £1m in rent per year, and is occupied by tenants including Medicash, Reed Specialist Recruitment, and Brook Street. Tesco and Pret a Manger are among the tenants on the ground floor.
The office space is almost fully let with only around 1,000 sq ft remaining; Worthington Owen and CBRE are the appointed agents, with rent around £15/sq ft. CBRE also acted for Mordril on the deal.
The building is understood to be Hong Kong-based Mordril’s only holding in Liverpool and its sale represents the investor’s exit from the market. The investor had owned the building since the late 1990s.
Palace Capital is based in London, and also owns the 77,000 sq ft Boulton House on Manchester’s Chorlton Street, let to tenants including Arriva Rail North.
Simon Bland, managing director of Mason Owen which acted on the transaction, said: “‘The One Derby Square deal, which completed on Christmas Eve, was a fitting end to a productive 2018 for us at Mason Owen – and for Liverpool’s property market.
“Despite the foreseeable challenges across the retail sector, the city is exceeding expectations with both office and industrial growth remarkably positive.”
Neil Sinclair, chief executive of Palace Capital, added: “One Derby Square is centrally located, close to the Liverpool One development on Paradise Street, in a city which forms part of the Northern Powerhouse and which is going through a very considerable renaissance. We are pleased to make this investment.”