Aerium has acquired One Central Square, a newly developed grade A office in the centre of Cardiff, from Legal & General for £51m.
One Central Square is the first building to be completed within phase one of the city’s new Central Square development, a 12-acre mixed-use, office-led scheme.
The 134,950 sq ft asset, located adjacent to Cardiff Central railway station, comprises nine floors of office space and basement car parking.
The building is 97% occupied, let to six tenants including Blake Morgan, Julian Hodge Bank and RBS, with a weighted average lease term of 9.4 years.
Construction of the Central Square project commenced in 2014, with One Central Square completing in March 2016 already 21% pre-let to Blake Morgan – demonstrating demand for high-quality office space in the area.
Works are progressing on phases two and three of Rightacres and Legal & General’s scheme, which will include a new £120m headquarters for BBC Wales, expected to be completed by mid-2018.
Robin Carr, co-chief investment officer at Aerium, said: “We firmly believe that this area of Cardiff, directly adjacent to the Central Station, presents a highly appealing offering to occupiers, as demonstrated by the covenant strength of our building’s tenants.
“With the BBC taking up occupation opposite us in 2019, and the huge improvements underway to the wider public realm, we have no doubt that this area of Cardiff will continue to flourish.”
Tom Roberts, head of strategic investment and regeneration at Legal & General Real Assets, said: “The sale of One Central Square realises our business plan to attract third party capital into completed phases of this transformational Cardiff regeneration project, allowing us to focus on future phases of development with our partner Rightacres and, together, seek new economic growth opportunities that are a good match for our capital.”
Knight Frank acted for Legal & General.
To send feedback, e-mail Louisa.Clarence-Smith@egi.co.uk or tweet @LouisaClarence or @estatesgazette
