Construction work has begun on Liverpool's flagship Pall Mall development, a £60m city centre office and green space project that the city council will fully fund after failing to secure an external investor.
The long-standing project, with plans approved more than six years ago, is located on the former Bixteth Street Gardens and will include three blocks of offices, a hotel and gardens. Progress had slowed after an initial site clearance was completed.
Council steps in to fund the scheme
In July, Liverpool City Council announced it would step in to fund a major part of the project after no external investor was identified. A design and build partner was appointed in the summer, and documents revealed the local authority will acquire the completed development in 2028 and fully fund it, with a view to selling it later. More than £20m will be borrowed to meet the full £60m cost.
A cabinet report in June 2025 had proposed using Ministry of Housing, Communities and Local Government (MHCLG) Strategic Futures funding alongside investment from an institutional forward-funder, underpinned with a 15-year council rent guarantee. Despite these arrangements, a willing backer was not found.
Enabling works and new documents
City leaders were recommended to fill the financial gap using the Public Loan Works Board and borrowing the remaining £20m, to be repaid once the development is sold. In October, the council announced enabling works had begun, and confirmed the scheme is also in line for support from the City Region's £2bn Investment Fund, subject to approval.
New documents have been uploaded to the council's planning portal on behalf of Kier Property Developments Ltd (KPDL), including a day-time bat walkover survey, a drainage report, and a covering letter seeking to discharge a condition attached to the planning approval.
Part of wider regeneration plans
Pall Mall sits within the proposed Liverpool North Docks Mayoral Development Corporation area, intended to accelerate regeneration and attract investment across the north of the city centre. Council officials say the projects would help strengthen Liverpool's position as a leading destination for business and investment, bringing new jobs, businesses and economic activity.
The wider masterplan will deliver up to 400,000 sq. ft of Grade A office space, a hotel and supporting uses centred around new green public space. The council has said Liverpool has seen strong demand from businesses seeking modern workspace, and noted the market has not delivered a significant new Grade A office building in the city centre for more than a decade.
The proposed investment is intended to bridge that gap, providing the confidence needed to bring forward development and stimulate wider private sector investment. The principle has recently been replicated at the Martins Bank building on Water Street, where an £83m renovation project is planned. The Liverpool City Region Combined Authority confirmed on Monday it will support that scheme with a proposed £22m investment.
