Lone Star has sold a 365,000 sq ft office complex in Liverpool to Shelborn Asset Management for £42m – the city’s largest office investment deal this year.
The acquisition of Exchange Flags is Shelborn’s third office investment in the city this year and sees them control more than 800,000 sq ft of workspace, including the 350,000 sq ft India Buildings which HM Revenue & Customs is poised to occupy as a giant hub.
Exchange Flags was acquired by Lone Star as part of its £5.2bn purchase of the Project Rock and Project Salt loan books from IBRC in 2014.
The loan against the property was included in the sale as previous owner UK Land and Property was in administration.
The office complex, which comprises Horton House and Walker House, had 140,000 sq ft vacant when Lone Star acquired it.
It is now circa 85% let with an annual rental income of £4.4m a year to tenants including marine services firm Brookes Bell, outsourcing company Capita and engineering consultancy White Young Green.
Rent-free periods are due to expire in the next 12-18 months, at which point the yield would represent around 10%.
Who are Shelbourn Asset Management?
Earlier this year, Shelborn bought the India Building from Green Property for £17m and No 1 Tithebarn from Carleton Estates for £7.2m. In Liverpool it is acting on behalf of a group of South African investors.
Schreiber, of which Shelborn is a spin-off, has previously acquired, refurbished and sold Imperial Court on Exchange Street and Reliance House on Water Street.
The London based family-run business looks for added-value asset opportunities in regional cities. Brian Rabinowitz, director at Shelborn Investments, said: “I believe passionately in Liverpool.
Schreiber used to be active in Liverpool and we have come back to it because the time is right.”
He said he realised the opportunity 12 months ago, when “there was almost no decent space left in the city”.
• To send feedback, e-mail Louisa.Clarence-Smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette
