L&G has brought a prime, long-let office investment opportunity in the Cardiff capital region to the market, marketing DWP Hub at Treforest Business Park at a guide price of £37.5m.
The 132,993 sq ft Grade A office building is fully let to the Secretary of State for Housing, Communities and Local Government on a 25-year lease, with over 20 years remaining. The lease includes RPI-linked rent reviews every five years, capped at 4% per annum. The current passing rent of £2.18m per annum is forecast to rise to £2.63m at the next review in October 2025, with the vendor offering a rental top-up to this level.
Constructed in 2020, the freehold property boasts strong ESG credentials, including an EPC rating of A (21) and a BREEAM ‘Excellent’ certification. Situated on a 2.71-acre site within Treforest Business Park, a key commercial hub in South Wales, the building benefits from excellent transport links and proximity to the University of South Wales.
The investment offers a net initial yield of 6.5%, rising to an estimated 7.55% by 2030, based on the topped-up rent and purchaser costs of 7.74%. The capital value equates to £282 per sq ft.
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