Work is expected to start this summer on a 90,000sq foot office scheme in the centre of Cardiff. The Welsh Government, which is backing the project, is currently evaluating a shortlist of tenders from construction firms bidding to take on the development.
Welsh Business Minister, Edwina Hart AM, says the Cardiff office scheme is a genuine business partnership
The government purchased the Callaghan Square site from the London-based property investment and development business MEPC for £7.2m. It had originally been negotiating with Cardiff City Council to acquire the near five-acre plot — already granted planning consent for 500,000sq ft of new offices — as part of a joint development deal.
Under its plan to give the Welsh capital a convention centre and indoor arena, the city council had strongly favoured the site. It now looks as though the Government’s intention not to take up the full allocation of approved office space could well leave room for the council’s business and leisure projects. The Callaghan Square site could be extended even further with the acquisition of adjacent industrial units.
Depending on how quickly a construction company is selected, the £15m scheme could be completed as early as the summer of next year; a more conservative estimate would be late 2015. By then the Welsh Government would have another 90,000sq ft of Grade A office space to add to the 80,000sq ft building within Cardiff’s Capital Quarter scheme it bought last year from developer JR Smart.
The government’s foray into commercial property development has not pleased everyone. “The Welsh Government should focus on inward investors for its offices and leave indigenous office requirement to the private sector,” said Paul McCarthy, chief executive of Rightacres Property. “We should both be left alone to do what we know best.”
His company, working in association with the city council, recently submitted first phase plans for 150,000sq ft of offices in Capital Square. Planners have already stated they would be willing to see the area regenerated with 800,000sq ft of offices, retail and leisure units, and residential apartments.
In February the Welsh Government announced it would be investing £30m in a 180,000sq ft complex at the former Energy Centre at Wentloog, between Newport and Cardiff, in a joint project with the world-famous Pinewood Studios. It will be the first UK venture outside of the company’s Pinewood and Shepperton bases, which have provided production facilities for more than 1,500 films. The authority believes Pinewood Studios Wales would create as many as 2,000 jobs and generate £90m for local firms.
Welsh business minister Edwina Hart said her Government was providing £30m equity funding for the project. “We don’t want anyone to think we are giving taxpayers money away,” she said. “This is a genuine business partnership.”
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