Agents pick the most significant Deals (for the six months to the end of October)
Central Square, Cardiff
Type of deal Joint venture development
Developer Rightacres
JV partner Legal & General
Size 1m sq ft of development on 12 acres
Price £400m
Chosen by James Nicholas, partner, Alder King
Legal & General’s £400m jv with Rightacres, announced in September, will accelerate the regeneration of Cardiff’s Central Square and is the country’s largest and most significant transaction for years. I believe the assembly and delivery of this scheme in one of the most challenging commercial property markets is testament to Rightacres’ vision and commitment, while L&G’s decision to invest in Central Square through its regeneration investment organisation demonstrates its confidence in the Welsh economy. The partnership is envisaged to be the focal point of the city’s enterprise zone and the catalyst for further investment and development in the city centre. The 12-acre mixed-use scheme, immediately north of Cardiff Central station, will provide 1m sq ft of office, retail, leisure, hotel and residential space, and is expected to deliver major social and economic benefits, including more than 10,000 jobs.
Next, Cyfarthfa Retail Park, Merthyr Tydfil
Type of deal Retail letting
Landlord Hammerson
Tenant Next
Size 20,000 sq ft plus 20,000 sq ft mezzanine
Rent £600,000
Chosen by Matthew Morgan, partner, EJ Hales
I’m choosing this key retail deal which sees Next doubling the size of its store as a result of overtrading and relocating alongside a new 50,000 sq ft Marks & Spencer. As a result of this letting – and the earlier deal to M&S – Cyfarthfa is pushed into the top five such destinations in Wales. The new space has been created by the relocation of a B&Q unit to an adjacent site which, in turn, created an additional five units. Next’s former unit, meanwhile, is being taken by Wilkinson’s.
The Next letting has also encouraged other fashion retailers to secure units at the park. River Island and H&M will be opening in the near future, helping Cyfarthfa to further cement its position in the market. The scheme forms a key retail offering to the surrounding valleys and this latest deal reinforces its position as the strongest outside of Cardiff and Swansea.
Former T D Williams distribution premises, Penllergaer, Swansea
Type of deal Long leasehold purchase
Vendor AXA Wealth Services
Purchaser Welsh Boxes
Size 75,804 sq ft on 5.9 acres
Price £725,000
Chosen by Jason Thorne director, industrial and logistics, Lambert Smith Hampton
I am highlighting the sale of the former T D Williams Distribution premises because the transaction serves to highlight the lack of large scale warehouses in the region.
It demonstrates the strong demand from quality manufacturers and distribution occupiers within south west Wales and their willingness to take on properties in poor condition due to a scarcity of modern accommodation. These owner-occupiers are choosing to acquire and refurbish premises themselves.
When it comes to this sale, there were very few premises on the market offering tail board loading facilities. This opportunity was also very close to the M4.
It is a positive that there is a thriving community in the area for manufacturing and distribution businesses, but a deal like this is evidence of the fact that the whole region is badly in need of new facilities in the range of 25,000 sq ft to 100,000 sq ft to accommodate future growth.
People, politics and peculiarities
Seven up for LSH
Lambert Smith Hampton has made its professional services team into the “professional seven” with the appointment of David Jones from Hutchings & Thomas and several internal promotions.
Cardiff urged to cast net wide
The wider Cardiff region must enjoy the same taste of prosperity that devolution has brought to the city itself – that was the rallying cry from the chair of CBI Wales and lead director at JLL Chris Sutton. He was speaking at a lunch attended by outgoing CBI director-general John Cridland on his final visit in an official capacity to Wales.
Top tipplers
When the Earl of Plymouth Estates and Enterprise Inns decided to call time on a Cardiff pub – Radyr Court – an enterprising group of friends and regulars decided to take on the lease to save it from closure. The foursome now have a thriving watering hole. So if others are minded to do the same, Bilfinger GVA, which has been appointed by Cardiff-based brewery SA Brain to sell city pubs The Westgate and The Grange, could find itself receiving similar offers of interest.
Amber’s Swansea debut
Over in Swansea, a new face is about to appear in pub land following Lambert Smith Hampton’s successful freehold sale of the former Retro Club to Amber Taverns – making its debut in South Wales.
Happy to get the Blues
Cooke & Arkwright has worked with the Cardiff Blues, and previously Cardiff RFC, for two decades advising on business rate reviews that have saved the professional rugby club nearly £600,000 at Cardiff Arms Park and its training ground. Now the consultancy is enjoying recognition as an official supplier, giving it exposure on the club’s website and match day hospitality.
Tide in Swansea’s favour
The £1bn Swansea Bay tidal lagoon project, which could supply power for 150,000 homes, was granted planning permission in the summer. Laing O’Rourke was appointed the main contractor.
Arena set for Brains site
In Cardiff, the council chose the eight-acre Brains Brewery site, south of the city’s main railway station, for an 11,000 seat arena. It began discussions with Brains about a relocation.
Queensberry ready for sale
Queensberry Real Estate was preparing to sell the Friars Walk shopping centre in Newport, due to open in November, with BNP Paribas Real Estate being brought on board to sell it for around £120m – representing a 6% yield.
Smart mix for Cardiff
JR Smart unveiled proposals for a £100m scheme comprising a 250,000 sq ft mix of offices, hotels and residential space at Cardiff’s Callaghan Square.
Marks moves out
An outlet store in Pontypridd, South Wales, became one of the victims of Marks & Spencer’s decision to offload more than 275,000 sq ft of unwanted retail space.
Digs outdo offices
There was a warning from Savills office agency director Gary Carver, about certain Cardiff buildings being taken out of the market for student accommodation – Fitzalan Court and Custom House among them – that would have better suited office occupiers.
EG gauges the trials and tribulations of the Wales property market
