A landmark development of new Grade A office space and a fresh urban park in Liverpool city centre could get back on track with the approval of a £15 million investment package.
Liverpool City Council's cabinet is anticipated to approve a substantial funding plan for the previously halted Pall Mall development scheme, in the city's commercial district. A £15m investment has been secured from central government following a Strategic Futures report that examined potential investments for Liverpool's economic future.
The council-owned site saw some preparatory works in 2020, alongside a masterplan proposing three large office buildings and a hotel surrounded by new green space. However, the plans hit a snag and the site has remained vacant and cordoned off since then.
If the new £15m cash injection is approved by the council's cabinet and the government, the goal would be to complete phase one of the £55m scheme – including an eight-storey office building with a new urban park – by summer 2028. That would be the first Grade A office development in the city's business district in 16 years.
Kier Property Developments Ltd, the appointed developer, has obtained planning consent for phase one, which includes delivering 111,500 sq ft of office space, ground floor retail units, and a 0.5 hectare green space, reports .
The council suggests that the proposed new building would be highly energy efficient, with the developer aiming for it to become the first operationally net-zero office building in the Liverpool City Region.
The site was once home to the much-loved Bixteth Street Gardens, a rare and popular green space in the city centre. The area was fenced off in 2019, ahead of planned construction for an original Pall Mall scheme, sparking protests and strong objections.
The council-owned site was subsequently levelled and remediated, with plans approved for three office buildings and a hotel. However, due to viability issues and a decrease in office demand following the pandemic, the project stalled and construction never commenced.
Despite this, the council maintains that reviving this scheme is crucial and has decided to inject public sector funds to kickstart the project. The first phase of the scheme is viewed as essential to stimulating the remaining phases and boosting Liverpool's office supply.
Pall Mall is also situated within the proposed area for the new Locally Led Urban Development Corporation. The council, in collaboration with the government, aims to use this to establish an accelerated development zone, overseen by the recently appointed Imagine Liverpool regeneration partnership board.
The cabinet report, set for discussion on June 4, suggests that Liverpool City Council leverages its ownership of the site to offer a 15-year rent guarantee for any unoccupied space, aiming to enhance the project's value.
Councillor Nick Small, Cabinet member for Growth and Development at Liverpool City Council, said: "This proposed investment would not just bring forward a top-quality Grade A office scheme and a new urban park in our business district, it will act as a catalyst to stimulate investor confidence in the city.
"We need to address the office supply and commercial rent catch-22 Liverpool has found itself in. Demand is now rising following the post-pandemic slump and we need to take advantage of that by unlocking supply.
"The Pall Mall scheme is oven-ready and could be open for business within three years, helping Liverpool to retain and attract major companies. Our Strategic Futures programme was designed exactly for the purpose of oiling the wheels of economic growth, which is exactly what this development would do."
Cllr Small further told the Liverpool Echo: "I think we need to create a destination on this site where people will choose to come and work and open space will be vital to that.
"I think we have got a much better development than the one we were looking at six years ago. I am really excited about what this will mean for Liverpool and for jobs in the city."
The cabinet member highlighting Pall Mall's potential to catalyse the expansion and regeneration of Liverpool's business district. He said: "This is just the start with Pall Mall, it is phase one - we want to look at the whole wider site including the NCP car park and other areas that can be developed. We want to see an expansion of the business district and a new commercial district for Liverpool.
"It has been a long time since we built any new Grade A office space in the city centre and it is desperately needed. What we are talking about is a new neighbourhood in the city centre, where people can live and work including new public realm and green space. We will even look at holding markets and events in the area in the future."
Leigh Thomas, group managing director of Kier Property, also commented on the project, saying: "The city council has been a staunch advocate for the Pall Mall scheme and the report outlines our joint recognition that there is an acute need for highly sustainable new grade A office space that meets the needs of the modern workforce.
"The steps being proposed to address the viability challenge are both very positive and necessary. As development partner, we remain fully committed to regenerating the Pall Mall site and look forward to continuing to work with Liverpool City Council's team as we seek to bring forward the first phase of this priority scheme."
