High profile Liverpool purchase puts Northern city on the map
All eyes are on Liverpool property this week with the news that Farhad Moshiri is behind the multi-million pound purchase of the iconic Royal Liver Building - and experts believe this will precipitate a local property boom.
The Liverpool landmark sold for £48m (US$63m), a huge deal which shows just how much Liverpool has grown in the last 18 months as a property destination. Since the beginning of 2016, £300m worth of property deals have been conducted, propelling the Northern city into a new era of property deals.
The Liver Building opened in 1911, a purpose-built home of the Royal Liver Assurance group, which was set up in 1850 to help locals who’d lost a wage-earning relative. It was one of the world’s first buildings to be built with reinforced concrete, and standing at 322 feet tall, it’s the joint-fourth tallest structure in Liverpool.
All eyes on Liverpool
Global property investor CBRE, who handed the sale, says the Royal Liver Building deal will mean foreign investors’ eyes will be firmly on Liverpool.
The landmark went on sale last year - the first time in its 106-year history - with a price tag of £40m. It sold in February, to a consortium led by investment company Corestate Capital. Later, it was revealed Moshiri, who is also Everton Football Club’s majority shareholder, was Corestate’s partner in the deal.
Property UK sales director Mert Altinisik said the decision by a large investor to invest in Liverpool was a great sign. “Corestate’s investment shows a significant amount of confidence in Liverpool’s economy, and will no doubt mean other investors will be looking north, which means a very exciting time ahead for Liverpool.”
CBRE is behind other large deals that have been brokered in the last year and a half, including the £45m sale of the Exchange Flags office, and the ongoing £2bn Knowledge Quarter regeneration scheme.
The northern city’s excellent universities, strong legal and creative sectors and young population are helping drive the city’s fortunes - and its popularity with investors.
The rental industry is growing in parallel, as the lack of quality student housing comes to the attention of investors keen to take advantage of the high rental yields on offer in the city. Liverpool now commands 8% rental yields - a clear lead over second placeholder Nottingham, where the average rental property will net investors 5.6 percent rental income a year.
“It’s clear Liverpool property is no longer seen as a compromise on more expensive London property,” says Mert. “It’s now a viable investor choice, and I’m confident we’ll see many more multi-million pound property deals brokered in the city in the next few years.”