Shelborn adds to Liverpool assets with Exchange Flags

Liverpool’s Exchange Flags office complex is to be sold to Shelborn Asset Management for £42m by Hudson Advisors.

The deal follows news that the neighbouring 350,000 sq ft India Buildings, bought by Shelborn for £17m in January, is reportedly the preferred location for the consolidation of HM Revenue & Customs’ local offices.

Exchange Flags’ office space is 85% occupied and produces annual rental income of £4.4m. Ground floor retail and leisure occupies include Philpotts, Fazenda, Vincent Café & Cocktail Bar and The Juicery.

Exchange Flags comprises Horton House and Walker House and totals 460,000 sq ft. It was bought by UK Land & Property and Pochins from the late Bill Davies’ Walton Group in 2006 and refurbished at a cost of £22m before being taken on by Hudson, on behalf of private equity fund Lone Star, as part of a legacy property debt purchase from the Irish Bank Resolution Corporation.

CBRE is representing Hudson. Keppie Massie and Worthington Owen are the letting agents for Exchange Flags.

All parties declined to comment.