Decision

The Director of Capital Programmes and Assets has approved the award of a contract to act as the letting agent for Birkenhead Commercial District to CBRE Limited for a period of 2 years from 20 July 2026 to 19 July 2028. The award is a direct award via National Framework Partnership – Strategic Asset Advisory Framework (2025/s 000-005523). The fees will be based upon 10% of the gross annual rent per letting but will be capped at £150,000 plus up to £10,000 for disbursements.

Reasons for the decision

In December 2021 Wirral Council entered a long lease the office development in Birkenhead Commercial District. The offices were developed by Wirral Growth Company and were completed in September 2023.  The Council now occupies the majority of Mallory Building with the whole of Irvine currently being empty and available for letting.

CBRE were initially appointed as the letting agents for the premises, with their fees being based on a proportion of the final gross rental figure.  CBRE have already undertaken a comprehensive letting strategy and have manged to secure interest from potential tenants. 

The original agreement has now expired, and it is proposed to re-appoint CBRE to enable them to continue with the letting strategy as they have already engaged with potential tenants and this process needs to be continued.

The proposed fees will be based upon 10% of the gross annual rent per letting but will be capped at £150,000 plus up to £10,000 for disbursements. This is in keeping with industry standards.

The anticipated spend profile will be as follows:

Year 1

Year 2

£60,000

£100,000

Alternative options considered

The council could undertake a full procurement exercise, but CBRE have already undertake the majority of marketing and have identified potential interested parties.