Cardiff Capital Region’s (CCR) Strategic Premises Fund has loaned £15m into a new 114,000 sq.ft office block in Callaghan Square in the centre of Cardiff financed by CCR via a debt-loan to developers JR Smart. Lloyds Banking Group is set to take a 10-year lease on the entire building, with 3,000 employees due to move into this new office accommodation.
John Street is a prime office building, designed to the highest standards and targeting a BREEAM sustainable building certification rating of ‘Excellent’ that commits to minimising its environmental impact and incorporating innovative solutions to ensure long-term sustainability. The 10-storey building will benefit from all electric services, an EPC ‘A’ rating, WELL ‘Silver’ accreditation and will incorporate a rooftop terrace with views across the city and Cardiff Bay. The Landlord’s works are on schedule for completion in December this year with Lloyds occupying the premises from summer 2026.
For both tenant and employees, the location will take full advantage of future infrastructure projects being delivered in the region, including the new Crossrail development that will feed into Callaghan Square itself, as well as the proposed Cardiff Central enhancement in which CCR is one the main backers and financiers. Further afield, the just-approved Cardiff Parkway transport hub will complement both transport links and assist business growth in the region.
All investments from CCR’s Strategic Premises Fund, which is managed by CBRE Lending, are taken through a rigorous two-stage approval process. Previous commercial endeavours supported by CCR’s Fund include Pulse Plastics in Ebbw Vale, Great Point Seren Studios in Cardiff and Tŷ Hotels in Newport. The loan, upon repayment, will be reinvested back into the region.
Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said: “This investment in new office space at John Street in Cardiff will support key priorities such as business growth and regeneration for the regional economy.
“We continue to actively explore opportunities to work collaboratively with CCR in order to deliver significant economic benefits.”
Wales Office Minister Dame Nia Griffith said: “I am very pleased to see the UK Government’s investment in the Cardiff Capital Region. This will help to deliver on our economic growth mission, a vital part of our Plan for Change.
“This development, along with improved transport links, will provide fantastic facilities to encourage businesses to base themselves in Cardiff and to expand, helping to create new jobs and put more money in people’s pockets.”
Cllr Andrew Morgan OBE, Leader of Rhondda Cynon Taf County Borough Council and CCR’s Portfolio Lead for the Strategic Premises Fund, said:
“This CCR investment plays its part in further developing exciting and environmentally sustainable office space that national brands wish to take up, adding to the long-term inclusive growth in our region. CCR’s vision to connect communities, services and businesses continues to develop and our interventions in office space and transport links have a key transformative role.”
George Richards, Senior Director, CBRE Lending, who manage the Strategic Premises Fund on behalf of CCR said:
“This is a pivotal investment in the region, which aligns with the fund’s core objectives of job creation, private sector leverage and the delivery of new employment space. The outstanding ESG credentials of the building meet CCR’s sustainability objectives, and their continued journey towards Net Zero.”
