Regent Capital and The Co-operative Bank have agreed a deal to forward fund the development of the iconic Liverpool department store.
A syndicate of clients of Regent Capital have arranged a ten-year senior debt facility with the Co-operative Bank for the £37.1m redevelopment of Lewis's department store in Liverpool. Cheshire-based developer Merepark will deliver and manage the building for ten years as part of the sale agreement.
Merepark said construction work would begin this summer on 180,000 sq ft of retail/leisure space below 80,000 sq ft of offices and a 125-bed Adagio Aparthotel. Adagio is a joint venture between Accor and Pierre Vacances hospitality groups.
The building will be part of Merepark's wider Central Village regeneration scheme between Renshaw Street and Bold Street.
Ian Jones, director of Merepark, said: "Securing forward funding and attracting a major hotel group, represents a compelling vote of confidence in both the future of the Lewis's Building and Liverpool as a place to do business. We are looking forward to starting on site and delivering a scheme which will give the building a new lease of life and a place at the heart of the wider Central Village development."
Phil Basten, head of property finance at the Co-operative Bank, said: "It has been a great opportunity to back the rejuvenation of this landmark building – a massive team effort to give this fantastic building a new lease of life. We're in a strong position to continue to provide funding on schemes like this, where we focus on supporting existing customers and developing high quality, long-term new relationships."
The refurbishment is scheduled to be available for occupation from the third quarter of 2011. DTZ and CBRE have been appointed as agents for the offices and Savills advised Merepark on the pre-let to Adagio.
- Former senior contracts manager at Mowlem and Carillion, Alex Moore, has joined Merepark to oversee the delivery of future projects including Central Village. His previous projects include the Quadrangle in Manchester, the Warrington Collegiate campus and Oldham LIFT. Louise Ilhan has also joined the team as company solicitor from law firm Cobbetts LLP. DLA Piper will act for Merepark in relation to its larger scale investment and development management projects.