CBRE Capital Advisors facilitates regeneration of historic Liverpool hotel on behalf of Merseyside Pension Fund

CBRE’s Investment Advisory team, part of CBRE Capital Advisors, has arranged a £20 million senior loan facility on behalf of the Merseyside Pension Fund, to support the redevelopment of North Western Halls in Liverpool city centre for prominent North-West developer, The Marcus Worthington Group. This is the second loan that the Merseyside Pension Fund has committed to provide to The Marcus Worthington Group, having financed 125 Deansgate in Manchester in 2016.

The redevelopment will see the Grade II listed, Sir Alfred Waterhouse designed building, which is currently student accommodation, returned to its original use as a 202-bed hotel. Situated in the heart of Liverpool city centre, adjacent to Lime Street station, the building has been pre-let to Radisson who will be delivering its new ‘Radisson Red’ concept, only the fifth in the world. Radisson Red is aimed at the millennial generation and will complement the £140m refurbishment of Lime Street Station.

The funding marks the second investment backed by the Penson Fund’s Catalyst Vehicle since its establishment in 2016 and meets the ‘Catalyst’ criteria of supporting projects that help deliver economic growth to the Liverpool City Region.

Joe Bahsoon, Director, CBRE Capital Advisors
We are delighted to provide this debt facility, on behalf of the Merseyside Pension Fund, to facilitate the regeneration of this important historic building. This development is part of the ongoing regeneration of Liverpool City Centre and will provide the city with a first-class station hotel that complements the significant upgrades that have been made to Lime Street. The investment is a strategic fit for the Pension Fund’s Liverpool focussed pot of money, called the Catalyst Fund, and will assist in the delivery of a new hotel concept to the city.
Joe Bahsoon, Director, CBRE Capital Advisors

Russell Worthington from The Marcus Worthington Group commented: “This is an iconic hotel and I’m honoured to be involved in such a prestigious building. Both CBRE Capital Advisors and Merseyside Pension Fund were fantastic to work with throughout the funding process, without which we wouldn’t be where we are today. Renovation works have now started and with the assistance of our funders and advisors we hope to be opening the doors to guests in Q3 2020.”

Cllr Paul Doughty, Chair of Merseyside Pension Fund commented: “We are pleased to have made our second Catalyst Fund property investment. As the Fund is the Local Government Pension Scheme for the Liverpool City Region (LCR) it is rewarding that we are able to invest in this way, providing our members with a commercial return whilst stimulating economic growth in the LCR and regenerating an iconic building in Liverpool. We look forward to the potential of making similar investments in the future.”