A BUILDING in the heart of Liverpool city centre’s retail district is about to change hands in a £5.55m deal.

Invista Foundation Property Trust has exchanged contracts with Aviva on 88-94 Church Street, which is located on the corner of Church Street and Hanover Street and is currently home to Lloyds TSB.

The transaction will reflect a net initial yield of 11.3% and is expected to be completed on July 22.

The property comprises ground-floor retail space and office accommodation arranged over basement, ground and seven upper floors.

The entire property is let to Lloyds TSB at £664,000 per year, on a full repairing and insuring basis, for a term of 25 years with effect from December 25, 1989, and expiring on December 24, 2014.

The bank occupies the basement to second floors as a bank and the third to seventh floor offices are sub-let to a legal firm until Lloyds’ lease expires.

Invista says that, as well as offering an attractive initial yield, the property offers scope for asset management, including the potential for a lease extension.

It adds that, although the rent paid currently exceeds the market rent, the prominent position and the planning consent for a bank should assist future letting prospects.

Duncan Owen, chief executive of Invista Real Estate Investment Management, said: “The acquisition of Liverpool at 11.3% follows Keith House, in Edinburgh, which was purchased at a price reflecting a yield of 14%, illustrating that we continue to identify new investment opportunities with good property fundamentals at attractive pricing and income yields.”