Legal & General Capital has sold a £56.5m office block in Cardiff which is part of the 1m sq ft Central Square development.
The company has sold Two Central Square to Credit Suisse Asset Management at a net initial yield of 6.25%. The property is being developed by Rightacres and is fully prelet to Cardiff University and law firm Hugh James.
Two Central Square is due to reach practical completion in September 2018, at which point Credit Suisse will complete the transaction.
The site is located at the centre of the Central Square regeneration project, next to Cardiff Central Station.
The property has been designed by Foster & Partners and comprises 148,000 sq ft of offices.
Credit Suisse, which has bought the asset for one of its funds, has made an initial payment of £20m, with a £36.5m second tranche payment due on completion of the building.
Central Square is being developed by Rightacres and funded by Legal & General. It is Wales’ largest regeneration project.
Rightacres chief executive Paul McCarthy said: “Getting a global player like Credit Suisse to invest at this level in Wales is great recognition of the Central Square development and Cardiff as a prime real estate location. The development momentum continues to build and the level of interest from both occupiers and investors continues to grow.”
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