Ship Street Advisors and ADAPT Real Estate, acting on behalf of Jersey based investor UKRO, have acquired a multi-let office investment in Cardiff city centre.
The multi-let property comprises Golate House on St Mary’s Street and 31-35 Westgate Street, and the freehold interest has been purchased from Aegon Property Income Fund for £9.15m.
The acquisition was negotiated by Cooke & Arkwright’s Investment agency, with Savills advising the vendor. The deal reflects a net initial yield of 8.37%.
Golate House and 31-35 Westgate Street are situated on a c. 0.5 acre corner site fronting onto St Mary Street, Golate Street and Westgate Street, and provide 54,174 sq ft of office accommodation over four floors. There are four retail units on the ground floor and a shared secure carpark providing 21 parking spaces. Tenants include the National Probation Service, Sonovate, Hamlyn Williams, CPS Group, Gorilla TV, Brewdog, Betfred, Run & Become, Amplifon and Evapo.
James Taylor of ADAPT Real Estate said, “UKRO is delighted with its third acquisition in Cardiff. UKRO has now assembled a portfolio of 15 securely leased, CBD office properties spread across the UK’s major regional markets (ex-London). Our investors are of the view that the core fundamentals in the regional markets will prevail in the medium term and we will continue to add to the portfolio.”
Nick Lawley, Director at Cooke & Arkwright said, “We are delighted to have helped UKRO secure this investment. It occupies an exceptional position in the city centre close to Central Square and the Principality Stadium, and provides opportunities for further asset management, refurbishment, or redevelopment. This deal demonstrates that there is still good appetite from investors for well-located property in the city centre offering further potential.”