Ærium makes £51m Cardiff splash

Tuesday 1st August 2017

SOURCE: COSTAR

Ærium, the European real estate fund manager, has acquired One Central Square, a newly developed office asset in the centre of Cardiff from Legal & General for £51m, CoStar News can reveal.

One Central Square is the first building to be completed within phase one of Cardiff’s new Central Square development, a 12-acre mixed-use, office-led scheme in the heart of the city. The 134,950 sq ft asset comprises nine floors of modern office space.

The building is 97% occupied, let to six tenants, including Blake Morgan LLP, Julian Hodge Bank and RBS, and holds a weighted average lease term of 9.4 years.

Construction of the Central Square project commenced in 2014 with the start of phase one of the Masterplan with One Central Square being completed in March 2016. It was 21% pre-let to Blake Morgan LLP.

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 Wales, and are expected to be completed by mid-2018, offering a range of new local dining options and amenities for the influx of employees working in the area.

One Central Square is centrally located immediately adjacent to Cardiff Central Railway Station and benefits from unrivalled access to the city’s public transport network. Its prime location ensures proximity to a host of retail, leisure and dining amenities.

Robin Carr, Co-chief Investment Officer at Ærium, said: "One Central Square is a strong addition to our portfolio, providing us with access to a transformational development at an early stage of its life.

"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.

"The Central Square project continues to evolve at an extremely impressive rate and the appetite from investors such as Aerium is testament to the quality of product being created at this gateway regeneration site."

Knight Frank acted for Legal & General.

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