The BBC has signed a 20-year lease at Central Square in Cardiff, triggering the first phase of Legal & General’s investment into the scheme.
The joint venture between L&G and Rightacres will see a £400m regeneration project at Central Square, announced in September, as well as the financing of the 150,000 sq ft office building.
The lease includes five-yearly RPI rent reviews.
The Cardiff deal includes Legal & General Capital’s acquisition of One Central Square, a 135,000 sq ft office development, due for completion in February 2016 and part-let to law firm Blake Morgan.
It also includes the funding of Two Central Square – a 120,000 sq ft building being built simultaneously with the BBC.
Laura Mason, director of direct investment at LGC, said: “The positive economic impact of this investment will be not only felt by Cardiff itself, but by the whole of Wales. The BBC’s commitment will also attract other major occupiers to the area, fuelling jobs growth as well as other social, cultural and economic benefits.”
Matt Phillips, managing partner at Knight Frank, said: “L&G’s commitment to Central Square represents the largest property deal ever seen in Wales and is a massive vote of confidence in Cardiff. The Central Square scheme is pivotal to Cardiff and the wider region.
“Rightacres and Cardiff council’s vision for the scheme is game-changing and this partnership with L&G now ensures its delivery.”
Knight Frank acted for L&G.
