Wirral Council has spent £5 million on a Wirral Waters office block, declaring the move demonstrates its commitment to bringing investment to the region.
The Hythe, on Tower Road within the Wirral Waters development, reached completion at the close of 2021 and welcomed its inaugural tenant the following year. The structure marked the first Grade A office development on the Wirral in more than ten years and boasts views across the Birkenhead docks.
The acquisition forms part of an existing arrangement with Peel, who owns the docklands, though it's understood that Peel Waters will have no role in the building's future operations.
The ground floor remains vacant at present, with £250,000 in associated costs being met through profits from a council-affiliated company.
The purchase was completed earlier this year.
A Wirral Council spokesperson commented: "Wirral Waters is one of the largest and most significant regeneration schemes not just in this region but nationally and its success is a vital element of the wider efforts to deliver new homes and promote growth and prosperity for our borough, and the development of the Hythe offices is integral to that.
"The council will do all it can to support progress across the Wirral Waters site and this agreement with Peel is another illustration of the commitment to attracting new inward investment and jobs to Wirral."
In 2018, Peel L&P approached Wirral Council with a proposal to share the commercial risk of constructing the building, as it was deemed commercially unviable at the time, despite a £3m grant from the Liverpool City Region Combined Authority. The council subsequently entered into what is known as a Put and Call option.
This agreement stipulated that three years after the development's completion, Peel could require the council to purchase a 250-year leasehold for the site. However, if the building's value exceeded £4.985m before then, the council could make Peel sell the property for that amount.
In 2022, the building was valued at £3.9m, and in 2023, it dropped to £3.45m. Another valuation was conducted in 2024, but Wirral Council has not disclosed the current value of the building.
A report last year indicated that if Peel exercised its option, the council would be obliged to buy the Hythe for £4.985m, funded by borrowing. This would cost the council's services a total of £350,000 annually for 50 years.
Richard Mawdsley, director of development for Wirral Waters, stated that the building "has been a real symbol of the regeneration of the neighbourhood," adding: "The first and second floors were let quickly following practical completion to innovative and growing businesses.
"Peel Waters have been successful in securing occupiers for more than 70% of the whole space. Following the option agreement, Wirral Council have gained control of the BREEAM Excellent Grade A office building that cost over £7m to build and is income producing.
"Rental and property values will undoubtedly grow over time as markets improve and the regeneration of the area continues. This will be accelerated if surrounding connectivity infrastructure comes forward in a timely fashion."
