Plans to turn a former Liverpool shopping icon into a luxury hotel and casino could be under threat after a row between a developer and the building’s investment fund owner.
The old George Henry Lee store off Williamson Square in the city centre has been largely empty since Rapid Discount Outlet shut back in 2017.
The current developers, led by Count Niki Bolza of development company Niboco, have a planning application lodged with Liverpool City Council to turn it into a 157-bedroom hotel, restaurant, casino, nightclub and events space.
They also have the backing of Liverpool City Mayor Joe Anderson , who said he was “excited” about the plans.
But it’s recently emerged that Legal and General (L&G), who own the freehold for the building, have put it up for sale, and a row has erupted between the developers and the financial services firm.
Mr Bolza says the price is too high, while officials from L&G say the sale is the conclusion of a wider asset management strategy, and the firm is acting “in the best interests of pension fund investors”.
Mr Bolza said the hotel on Basnett Street would create “200 jobs”.
He added: “Our view from the start is that it’s entirely reasonable to convert that beautiful building into a hotel, which would become one of the best hotels in Liverpool.
“It’s a gorgeous building with massive potential. To use it as a hotel is ideal - it couldn’t be more suited to that. Retail, particularly on the upper floors of the building - is just not viable.”
He described the current scenario as “really messy”, adding that the project has been “hemorrhaging money”.
But he told the ECHO: “It’s cost millions, but it’s our hard work, initiative and our investment so I am going to fight tooth and nail.
“I don’t need to tell you how important it is to provide more hotel rooms for Liverpool - high quality hotel rooms in particular.”
He said the new facility will most likely be 4* with the potential for it to be converted into a 5* facility.
He said: “This is exactly what Liverpool needs. There are lots of 3* hotels but not an awful lot of high-quality ones, so this is a no-brainer.
A first look inside Duke Street Food and Drink Market:
“It’s going to have a knock on effect and will be so good for Williamson Square and the city. The area needs this development.”
Mayor Anderson said this week: “We are excited about the area and the potential for a hotel, so we have been in communication with the owners asking them to work with this proposal.”
A spokeswoman from L&G said: “The sale of this property is the conclusion of a wider asset management strategy that the fund put in place at the beginning of the year.
“Acting in the best interests of our pension fund investors, L&G has a fiduciary responsibility to take a best practice approach to the sale of this property – marketing it transparently, fairly and widely on the open market, using experienced agents.
“The property has been on the market for [over] a week and we will of course update you on the outcome of this process as soon as possible.”
The history of the building
George Henry Lee opened his first shop in Basnett Street in 1853 and the business eventually grew into one of the north's top department stores, with a striking building to match.
It was bought by John Lewis in 1940, and in the 1960s, the existing store was merged with the Bon Marche store next door, which faced onto Church Street.
In 2002, the old George Henry Lee name was dropped and the store became John Lewis.
And in 2008, John Lewis left for a new home in Liverpool ONE.
The old Bon Marche building became a TX Maxx, while the original George Henry Lee building was taken over by Rapid Hardware.
The original Rapid Hardware collapsed in 2013, but the store soon reopened as Rapid Discount Outlet.
That store finally closed in 2017 after Rapid Discount Outlet went into administration.
