The Grosvenor Liverpool Fund has raised£255 million from six investors, including Liverpool Victoria, two of Hermes' funds and Redevco, the Brenninkmeyers' UK property arm.
The 42-acre Paradise Project will create about 1.6 million sq ft (148,640 sq m) of retail space, including department stores for John Lewis and Debenhams, two hotels, 465 residential units, 5.5 acres (2.2 ha) of open space and 3,000 parking spaces. The project will be completed in 2008, during Liverpool's year as European Capital of Culture.
Although the Grosvenor Liverpool Fund will finance and own most of the Paradise Project, some sites, such as the residential and hotel buildings on the Waterfront and the George Henry Lee building on Church Street, will be funded separately. The door is still open for other investors to come on board, according to Grosvenor fund management director Mervyn Howard. He said: 'We believe this fund is an exciting and bold way of financing a project such as this, and we anticipate it will attract a broad range of additional investors once the development phase is complete.'
Grosvenor was advised by DTZ. CB Richard Ellis Financial acted for the investors.