THE multi-million pound third phase of Liverpool’s St Paul’s Square commercial scheme will go ahead after developer English Cities Fund (ECf) secured gap funding from the Northwest Development Agency (NWDA)
The project, which already has planning permission, will bring 109,000 sq ft of badly-needed grade A office space to the city centre market. The news comes as regeneration executives and property agents warn that Liverpool could miss out on inward investment without a steady supply of new space.
The revelation that gap funding will be required for phase 3 of St Paul’s Square is significant because the first two phases of the project did not require it.
They were built amid more healthy market conditions but it is now felt that in the recession and credit crunch a speculative development of this size could not proceed without state support.
Neither the NWDA nor its regeneration partner Liverpool Vision would officially confirm the assistance last night but sources have told LDP Business the funding was agreed on Monday.
Liverpool Vision chief executive Jim Gill said: “It is one of our priorities to drive the extension of the commercial district and the
completion of the St Paul’s Square development is a key part of the strategy to achieve that objective.
“There are not many other locations in the country where speculative office development on this scale is taking place.”
A spokeswoman for the NWDA said negotiations were in the “final stages”.
The £80m St Paul’s Square project represents the first phase of Liverpool’s new Commercial Quarter Masterplan centred on Old Hall Street and Pall Mall.
ECf – which comprises Muse Developments, Legal & General and the Homes & Communities Agency – has already created more than 250,000 sq ft of office space during the first two phases.
Tenants now include law firms Hill Dickinson and DWF as well as Bank of Scotland Corporate.
ECF’s masterplan eventually aims to create 1.6m sq ft of mixed-used space.
Darran Lawless, development manager for ECf, said: “ECf is approaching the final stage of the process which will be the confirmation of the award of a grant from the NWDA.
“We are working in partnership with the NWDA and Liverpool Vision and are making positive progress. We expect confirmation in the near future.
“The flagship development is widely acknowledged as one of Liverpool’s key regeneration projects.”
CAN Liverpool make the A Grade? – pages 8 & 9.
