Merseyside Pension Fund has begun a refurbishment programme worth up to £5.3 million at 43 Castle Street in Liverpool city centre, upgrading the 1950s office building to meet evolving occupier expectations. Works include a full refurbishment of the first floor and new basement end-of-journey facilities.

Merseyside Pension Fund, administered by Wirral Council, holds more than £1 billion in real estate investments, including around £400 million invested directly in UK property.

Also known as Castle Chambers, the eight-storey, 148,000 square foot building sits within Liverpool's Commercial Quarter and Castle Street Conservation Area, and has already undergone upgrades to its reception and selected floors in recent years.

The first floor refurbishment, due for completion in December 2026, will deliver a range of modern office suites, including spaces with access to private terraces.

A further phase, completing in the first quarter of 2027, will see the delivery of new basement end-of-journey facilities, including showers, secure cycle storage and dry lockers.

The structural driver is defending occupancy in an ageing city centre asset against a market increasingly prioritising ESG credentials and flexible amenity led space, with the fund assessing refurbishment as offering better risk adjusted returns than sale or conversion.

"Environmental and social improvements, including diversity, inclusivity, belonging and equity is embedded in all aspects of our advice and project delivery to enhance sustainability and occupant wellbeing, including access to and around the building," said Simon Hepple, project manager at T&T.

"Occupier requirements have shifted significantly over recent years, with businesses prioritising quality, flexibility, ESG and wellbeing in their real estate decisions. This refurbishment scheme reflects those priorities," said Jade Bushell, surveyor at CBRE, sole letting agent for the building.

For the sector, the Castle Street programme shows institutional owners choosing targeted refurbishment of ageing city centre stock over disposal, betting that ESG and amenity upgrades will sustain occupier demand.

Source: Place North West / Birkenhead News