Palace Capital offloads 70,000 sq ft Liverpool office
Medicash, a tenant in the building, has acquired One Derby Square for £12m.
Palace Capital has sold the 70,000 sq ft Liverpool office for £2m less than it paid for it in 2019.
The five-storey building, previously known as Pearl Assurance House, is located opposite Liverpool ONE and is let to 14 tenants, including Mediacash, which occupies 12,500 sq ft.
Other occupier include Exchange Chambers and Adecco. The ground floor is let to Tesco Express, Pavers, Pret a Manger, and French bistro, Bouchon.
Sue Weir, chief executive of Medicash, said: “This acquisition is an exciting development for Medicash and represents a strategic moment in our growth strategy.
“One Derby Square presents a tremendous opportunity for us to continue to expand our services, generate new income streams and better serve our existing and future customers for decades to come.
She added: “Medicash remains committed to its mission of improving the health and wellbeing of individuals and organisations, and this acquisition is a testament to that commitment.”
Medicash has purchased One Derby Square through the acquisition of Palace Capital Liverpool, the SPV that owned the building.
The company has been renamed as One Derby Square Limited and is now a fully-owned subsidiary of Medicash.
Mark Worthington, director at Worthington Owen, said: “This is a great investment for Medicash that will not only allow them to grow as a business but will generate a solid income stream over the years ahead.
“Having reviewed the market for opportunities to purchase, it was clear that One Derby Square was the best building for Medicash, and we were delighted to help broker the deal.”
HB&O, DSG, and Hill Dickinson also advised on the deal.
Mason Owen and Hamlins acted for Palace Capital.
CBRE will remain as building manager for One Derby Square and all its tenants.
A good letting for this area, handy for James St station and bus routes.
Across the road the corner building has ground floor space available which would be ideal for a restaurant, like The Ivy, as it includes an external front area with a covered arcade ideal for extra seating.
Mandale have already converted one nearby building to residential and are about to convert another.
By Anonymous
Not great news the vibrancy of Liverpool city office market, or its attractiveness to serious investors. At £171 psf capital value, it doesn’t bode well for LCC when they need to report a market valuation on their £140m investment on the near empty Spine and Paddington Village development.
By Anonymous
Seems to be good value for an aging office building on the fringe of the business district. A few years back we were sub £100 per sq ft on properties of this type. Good to see the return of a local landlord as well. I wish people would stop using anonymous for their comments.
By Michael Mouse