Peel will give Liverpool City Council a one-off payment of £1.5m to remove a restrictive covenant, enabling it to sell the site to an investor for a 1,200-home residential development.
LCC’s cabinet will discuss the matter at its cabinet meeting on Tuesday 19 March.
Cllr Nick Small, Liverpool City Council’s cabinet member for city development, said: “I welcome this report. The release of the covenant unlocks substantial investment and development in a major gateway site of Liverpool city centre, connecting the Commercial District and Liverpool Waters.
“At the same time, the deal will also generate a welcome injection of money for the Council to reinvest in our services. It’s a win-win for everyone and a great example of how we’re working hard to deliver best value for the tax payers of the city.”
Chris Capes, Director of Development for Liverpool Waters, said: “The release of this covenant and sale of the site will be a significant step towards the eventual development of the King Edward Triangle neighbourhood – a pivotal link between Liverpool Waters, the Business District, and the city centre.
“Bringing in other developers and investors to accelerate the regeneration of Liverpool’s northern docklands has always been part of the strategy for the scheme, and we are pleased to see this deal moving forward.
“Working with Liverpool City Council we look forward to delivering much needed new homes and commercial space across the whole of Liverpool Waters for the benefit of the city and the wider region.
“We will be making further announcements in the coming weeks and months.”
As outlined in the report that will go before members, “releasing these covenants will enable the landowner to transfer its freehold interest to a leading UK property investment and development company who will bring forward a new high-rise residential scheme for the site”.
The report said that the investor is a company that has already worked with Peel and the city within Liverpool Waters, described thus:
“The Peel Group and the proposed developer have been key partners with the Council in the regeneration of Liverpool Waters, and have a proven track record of delivery, providing high quality developments, and providing wider community benefits and social value.”
At present, the site houses a well-occupied estate of around 18 light industrial units, housing uses including workshops and a car showroom – the covenants relate to the site’s use for purposes other than general industrial, warehousing and car parking.
Other than those restrictions, the council has no interest in the site. The sale price of £1.5m is based on a 20% share of the uplift in value from the current restricted use to the proposed use.
Should 1,200 homers be developed on the site, that could produce an annual income of £1.5m, in council tax, officers said.
The King Edward Triangle area was tipped in the 2000s as a potential site for a skyscraper, with plans for a 54-sstorey tower being revealed in 2007, ultimately coming to nothing.