PROPERTY firm Downing is closing in on a deal that would smash the record for a single property transaction in Liverpool.

The firm, founded by George Downing, says it has received strong interest in its 390,000 sq ft office building, The Capital, in Old Hall Street, which is up for sale with a price tag of £60.5m.

A sale of the freehold at that price would represent a net initial yield – the annual income from tenants – of 8%. Downing acquired the building in 2006 from insurance giant Royal & Sun Alliance (RSA) for £51m – the current record for a single property transaction in the city.

Since then, the company has spent a further £15m refurbishing the office space to a standard which it claims is equal to that of Grade A accommodation. That makes the sale price around £6m less than the total investment.

However, the original purchase also included the adjoining multi-storey car park which Downing is keeping, and therefore it claims any deal would not represent a loss on that investment. John Clegg, head of property management at the firm, told LDP Business: “Over a period of time, we have received sustained interest from potential purchasers and we have now decided the time is right to explore this on a more formal basis.

“Any transaction would have to be right for Downing. We’re proud to have The Capital as a centrepiece in our portfolio.”

The Capital would represent an attractive proposition for a pension or investment fund, as the bulk of the office space is occupied under long leases by two gold-plated tenants – the UK Border Agency and RSA.