The UK government is opening a new 265,976 sq ft hub at Cardiff’s Central Square, in what will be the largest ever Welsh office leasing deal.
The government has taken a 25-year lease on the office space at regeneration project Central Square, which is being developed by Rightacres and funded byLegal & General.
Central Square will become home to more than 4,000 civil servants from several government departments. This includes HMRC, which will run one of its 13 regional centres from the site, and the Office for the Secretary of State for Wales. The Government Property Unit, advised by JLL, is overseeing the deal for the new hub.
Construction of phase one of the Central Square project commenced in 2014, with One Central Square completed in March 2016. It was 21% prelet to Blake Morgan.
Works are progressing on phases two and three of Rightacres and Legal & General’s scheme, which will include a new £120m headquarters for BBC Cymru, and are expected to be completed by mid-2018.
Paul McCarthy, chief executive of Rightacres, said: “Over the past few years, Cardiff has experienced the perfect storm of requirements; I don’t think there has ever been such a large number of office requirements in such a short time frame. The BBC, Hugh James, MotoNovo and government requirements, which total over 600,000 sq ft net, all came within a two year period.”
Tom Roberts, head of strategic investment and regeneration, LGIM Real Assets, added: “This prelet to the UK government represents another enormous milestone in the delivery of Central Square, one of the country’s most impressive and transformational regeneration schemes. This city gateway development is already delivering major social and economic benefits, and proves the model for the public and private sectors working together in order to unlock real UK growth.”
Huw Thomas, leader of Cardiff council, said: “Cardiff is going head-to-head with all the major cities around the UK as we look to attract jobs and investment and this announcement shows we are getting things right.
Rhydian Morris, JLL director of office agency, who advised the GPU, added: “This deal, the largest office leasing transaction ever recorded in Cardiff and Wales, is a significant milestone not only for our capital but the wider economy.”
Russell Goodway, a councillor, said: “This decision reinforces the confidence that there now is in Cardiff generally and in the Central Square development in particular. Businesses and employers are seeing the council taking the right decisions and creating the right conditions for businesses to thrive. It’s important because it strengthens Cardiff’s role as the main economic driver in Wales and it means the city will not only serve as a great capital city for Wales but will be an important British city in a European context.”
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