A Welsh Government’s grade A office scheme in the centre of Cardiff has already secured a string of new tenants before it is formally signed off for occupancy.
The 79,500 sq ft building, located at the Capital Quarter development, was acquired last year by the Welsh Government from developer JR Smart in a £14m deal.
As part of the transaction on No 1 Capital Quarter, JR Smart is committed to building No 2 Capital Quarter at its development scheme. Work on the 90,000 sq ft building will start in May with a construction period of around 18 months.
The Cardiff office of property advisers Knight Frank are acting as agents for No 1 Capital Quarter – located in the capital’s enterprise zone for financial and professional services – for the Welsh Government.
The building, which could accommodate up to 1,000 staff, has generated strong interest in the marketplace, with 70% of the space already under offer.
It is understood that the building has signed up Finance Wales as a tenant. The investment bank subsidiary of the Welsh Government is expected to relocate to its new headquarters at the end of the year to coincide with the expiring of its current lease at Oakleigh House in Cardiff. It has taken the building’s top three floors.
A spokesman for Finance Wales said: “Finance Wales’ Cardiff headquarters will relocate to a new office in Cardiff when the lease on its current office in Park Place expires in December. Full details will be announced shortly.”
The other two tenants are in the private sector, with one understood to be a ICT inward investment project. The leases range from five to 10 years.
Video: View from No 1 Capital Quarter
When fully let the building will generate an annual rental income of £1.5m. The building is being marketed at £19 per square foot.
Associate partner with Knight Frank, Mark Sutton, who declined to comment on the identity of the tenants, said the building’s high standard of design, coupled with its close proximity to the city centre and being located in an enterprise zone, has made it an attractive proposition to both indigenous firms looking to relocate and potential inward investors.
He said: “To have 70% of the building pretty much spoken for when the building is just being finished is incredible really and says a lot about its quality. Now that the economy is picking up, businesses are thinking about expanding with a new sense of confidence to push the button on investment projects.
"JR Smart had the confidence to build during the downturn.
“Their entrepreneurial spirit is now reaping dividends as the building, now owned by the Welsh Government, is currently the only ‘show in town’ in terms of completed new grade A office space in the centre of Cardiff.”
A new £2.3m bridge from Capital Quarter to the centre of the city – taking pedestrians over the Great Western Mainline – is expected to be installed either over the last weekend in May or the first in June.
The impressively designed bridge is being financed by the Cardiff council, the Welsh Government and JR Smart. A walkway through the Capital Quarter scheme to the bridge will also be created. JR Smart is shortly expected to announce a major deal with a leading student accommodation provider for several hundred units at the Capital Quarter scheme.
It also close to striking a deal with a hotel operator.
The Welsh Government is also expected to shortly confirm a contractor to build a new 90,000 sq ft building near Capital Quarter at a parcel of yet to be developed land at Callaghan Square.
One option could be for the Welsh Government to enter into a joint venture agreement with a property development company to develop the scheme.
The near five acre site has full consent for up to 500,000 sq ft of office development. At this stage the Welsh Government has not taken a view as to when it might sell its investment in No 1 Capital Quarter.
That all sounds very encouraging! and fair play to JR Smart, with No2 building iminent, and not far off with the student accomodation deal plus an hotel maybe no too far away, then capital quarter will be filling up very nicely!
yeah but finance wales taking three floors is hardl inward investment, their funded from my hard earnt taxes, and they get a new office space
So, the Welsh government acquired the building for £14m, and they're reaping that back by letting it at the high-end rate of £19 per sq ft to, ....wait for it....Finance Wales, which is a subsidiary of The Welsh Government.
I wonder how much per sq ft. Oakleigh House was costing them in comparison(!)
But by making them pay rent to WG it means they don’t pay rent to the private sector. If that’s such a good idea then let'S get rid of the private sector and all get rich
If the building is aimed at private sector entrants ( which it supposedly is) then why not let JR Smart just rent it out direct, or sell it another company who will do so. What does WG bring to the party .....other than a large taxpayers chequebook (which Smart saw a mile off) and a load of self- serving politicians
And the idea that wherever Finance Wales moves will help them sell to “other” potential investors would seem to suggest that their previous building must have become an epicentre of commercial activity . And that development is difficult or impossible unless it happens to be on a site physically located within a few hundred yards of an office offering a source of finance .
This is about as wealth creating as me paying me to go to work.
Any non random comments from Random Comment?
all sounds a little bit stupid, you must question whats going on, am sure some of the private sector property owners will be watching this deal with interest.
I have heard that the remaining floor space is going o be taken up by a public sector company. It's going to be Natural Resources Wales
Yes an I t COMPANY funded by the Welsh Government probably!
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