Legal & General has exchanged contracts to buy land from the Welsh government to create the largest build-to-rent scheme in Wales.
The deal is the last stage of the Central Square 12-acre regeneration project, next to the railway station in Cardiff City centre.
L&G will invest £120m to go toward building a new bus station, 318 build-to-rent apartments, and 100,000 sq ft of Grade A office space.
The deal forms part of L&G’s wider £400m investment in the 12-acre mixed use city regeneration scheme, designed by Foster + Partners for Cardiff-based developer Rightacres.
With L&G’s funding, Rightacres has already developed several offices at Central Square. It sold Two Central Square (140,000 sq ft) to Credit Suisse Asset Management for £56.5m in 2017 before it was completed in October 2018, and let Six Central Square (265,000 sq ft) on a 25-year lease to the UK government in 2017.
Kerrigan Procter, chief executive of Legal & General Capital, said: “Cardiff Central Square is a prime example of how we are creating assets for Legal & General Retirement to back pension risk transfer deals and that can form part of LGIM-managed funds, while delivering jobs, housing, infrastructure and exponential economic growth.”
Huw Thomas, leader of Cardiff Council, added: “The building of a new bus interchange has been a number one priority for the council since day one of this administration, reflecting our commitment to delivering more and better jobs for the people of Cardiff and beyond.
“This will be the final stage of the completion of Central Square, which is the biggest regeneration project in Wales.”
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