Admiral Group has confirmed plans to take a record prelet in Newport city centre.
The insurance group has signed for 80,000 sq ft at Scarborough Developments’ Cambrian Centre opposite the railway station.
It has agreed a 20-year lease with a break at 16 years, at a rent believed to be around £15 per sq ft.
A 12-month rent-free period with collar and cap fixes on rent increases has also been negotiated.
The deal is thought to be the largest ever signed in the city centre and will virtually equal office take-up in Newport for the entire 2012.
The insurer has been mulling over four proposals of between 50,000-77,000 sq ft in the city centre since January last year. It will move 1,200 people into the building through flexible working and a shift pattern.
Scarborough Developments got planning permission for a 93,000 sq ft office block, plus 28,000 sq ft of shops, 290 car parking spaces and a public square in May last year.
Work has begun on site and is due for completion in May 2014.
Mark Jackson of Scarborough said: ” We have been working with Admiral for some time to deliver a sustainable solution and we’re very pleased to be underway.”
Huw Llewellyn, head of property at Admiral, said: “Our expansion in Newport gives us the opportunity to establish a city centre presence right opposite the railway station and provide excellent access to local amenities, public transport and to the retailers of the city centre.”
Commercial Property Consultancy acted for Admiral: Calan advised Scarborough.
nadia.elghamry@estatesgazette.com
