A site acquisition that signals an upturn in development activity in space-starved Cardiff was signed this week.
South Wales developer Rightacres paid £3.5m for the 4.5-acre former Lloyds Beal anchor and chains testing site, south of the city centre one of the most sought-after development sites in Cardiff.
The deal comes as a new requirement emerged for Legal & General. The insurance giant is believed to be looking for a new 140,000 sq ft Cardiff headquarters to replace its existing premises at Knox Court.
Market sources are already linking this to the Lloyds Beal site, where Rightacres is likely to pursue a mixed-use scheme. The University of Glamorgan is also keen on the site for a 120,000 sq ft media studies centre.
The land, on the corner of Canal Parade and Dumballs Road, was sold with industrial consent but city planners have indicated that the council would welcome a mixed-use scheme.
The Welsh capital has just 40,000 sq ft of grade A office stock available, and only one developer Landmark Securities has started building speculatively so far this year.
The second phase of Landmark’s Fusion Point in Cardiff Bay will provide 60,000 sq ft of offices.
Rightacres has completed a string of successful developments close to the Lloyds Beal site, including buildings occupied by the AA, Lloyds TSB Black Horse and Arriva Trains.
It also has a joint venture with MEPC to build speculatively more than 100,000 sq ft of offices in the second stage of Callaghan Square in the city centre.
Knight Frank director Matthew Phillips said Rightacres’ Lloyds Beal purchase confirmed that the “greater Callaghan Square area is now firmly established as a prime office location”.
DTZ acted for Lloyds Beal.
References: EGi News 10/06/05
