POTENTIAL buyers of Liverpool’s Capital office building have the capacity to significantly expand the site, current owner Downing says.
Downing has put the 390,000 sq ft site up for sale with a price tag of £60.5m.
A successful sale at that price would smash the previous record set by Downing when it bought the Capital for £51m in 2006.
Prior to the credit crunch the firm had ambitious plans to develop the building.
In May 2007, planning permission was granted to extend level eight and nine to 18,816 sq ft and 20,257 sq ft respectively, although that consent has now lapsed.
Downing also envisaged constructing an entirely new high-rise development on land next to The Capital and in 2007 held a design competition for the site.
Architects at Allford Hall Monaghan Morris came up with a design for a four-star hotel and residential building with associated conference centre, retail space and health spa and sports club.
Glenn Howells Architects envisaged the site could accommodate two towers.
The first would comprise a 20-storey hotel with 140 bedrooms plus a health club and conference facilities.
The second building would soar to 34 storeys with 226 residential apartments.
In its sale brochure for The Capital, Downing says: “Downing had initial dialogue with the local planning authority who were broadly supportive of the plans.
“To date, no planning permission has been sought although significant development potential remains for any potential purchaser.”
Downing has spent around £15m upgrading the existing office space. The original purchase also included the connecting multi-storey car park which Downing will retain.
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 insurance giant Royal & Sun Alliance, the building’s previous owner..
Last year, the UK Border Agency agreed to take 220,000 sq ft of office space – a record letting for the city centre – on a 15-year lease.
