CITY HQ MOVE FOR FINANCE GIANT
ONE OF THE BIGGEST OFFICE DEALS EVER SEEN IN WALES:
FINANCIAL services giant Legal & General is investing in a new headquarters for nearly 2,000 staff in the centre of Cardiff in a major boost to the city’s economy and office market.
In the one of the biggest office deals ever seen in Wales, and one of the largest in the UK this year, L&G is bringing its entire workforce in the city under one roof at 120,000 sq ft of new grade A office space at the currently underconstruction Interchange development at Central Square.
The Interchange is being delivered by property development firm Rightacres Property in the latest phase of its one million sq ft office, residential and retail Central Square scheme, located in front of Cardiff Central Train Station.
L&G, which has backed Rightacres’ phased development of Central Square with more than £400m of forward funding and annuity fund backing, will take occupancy of the eightstorey office element of the Interchange scheme in early 2023 following the building’s completion in November 2022.
It currently operates in the city from the Brunel House and Knox Court office schemes, where it employs more than 1,800 staff.
The £140m Interchange will also include a new 14-bay bus station for the city and 318 new build to rent apartments from L&G Homes.
The grade A offices at the Interchange is being forward funded by L&G Capital and leased to L&G Resources (the tenant), with a guarantee from L&G plc.
The fact FTSE 100 L&G has committed to a 25-year lease underpins the importance of Cardiff to it UK operations.
The Interchange is located next to the now fully operational new HQ for BBC Cymru Wales.
It is the latest phase of development at Central Square which as well as the BBC building includes the fully let Central Square 1 and 2 office buildings and a new 270,000 sq ft HQ for HMRC in Wales.
L&G said its new HQ will provide staff with a collaborative, agile space to meet changes to working practices in the wake of Covid-19.
It will also offer cycle and changing facilities, a café, social space and an external terrace.
Chief executive of L&G, Nigel Wilson said: “This is a landmark moment for Legal & General, bringing almost 2,000 of our staff to a modern, state-ofthe-art office space which sits within one of our most iconic regeneration schemes.
“We believe a new form of office has a key role in the future of towns and cities and are creating a space which is pioneering, innovative and will continue to drive up productivity, collaboration and idea sharing. These truly are the most essential functions of an office and are the reasons, I believe, shared workspaces will continue to play an essential role in business.
“Even in the wake of the crisis, we continue to commit to UK towns and cities, creating new opportunities for local people and helping to boost regional economic output. I am extremely proud of our work we have done at Central Square, which upon completion will add around £1.1bn of gross value added (GVA) to the region and create up to 13,000 new jobs.”
The Welsh Government acquired the land site for the Interchange development from Cardiff council for £15m in 2018. The council has previously acquired ownership in the buildings that have been demolished to make way for the project.
Transport for Wales, the Welsh Government’s transport body, will operate the bus station element of the Interchange. The bus station and its ground floor retail space will be owned by the Welsh Government.
Cardiff council’s cabinet member for investment and development, Russell Goodway said: “The new Interchange building is being delivered on a fully commercial basis and the announcement that Legal & General will be relocating their headquarters to the Interchange is a major investment into the project and the city.
“This has been made possible by working closely with Welsh Government and Transport for Wales [which will operate the bus station] and I am pleased to see the mixed-use scheme is now both affordable and commercially viable and the build is well under way.”
Welsh Government Minister for Economy and Transport, Ken Skates said: “I welcome the news that the L&G are to take up office accommodation at the Interchange, at the heart of our capital with easy access to multi modal transport.
“As a major employer in the area, it’s excellent news it has committed to maintain a significant workforce in Cardiff for the long-term.”
Construction began on the Interchange, designed by Holder Mathias Architects, in December 2019.
L&G said the fit out of its new offices will target net zero carbon.
L&G looked at a number of potential locations for a new HQ, including the last remaining site for development at Central Square, plot 5.
While its new offices has consent for around 21 car parking spaces, that is expected to be reduced to make way for more bike storage as part of L&G’s net zero carbon strategy.
Central Square is currently home to around 4,000 staff and once the HMRC building reaches full occupancy with 4,000 civil servants, coupled with L&G staff, it will reach around 10,000.
The plot 5 land site, between the new HMRC and Media Wales buildings, could provide new office and residential space.
The Cardiff office of property advisory firm Knight Frank acted for L&G on the Interchange letting deal.
Rightacres is also behind the two million sq ft Central Quay scheme on the former Brains brewery, immediately south of Cardiff Central Train Station.
It is also delivering, with financial backing from L&G, a new 130,000 sq ft office building for the Department for Work and Pensions on the Treforest Industrial Estate at Nantgarw.