City office scheme has new owners after £8.4m investment

A FLAGSHIP office scheme in Cardiff Bay is under new ownership following an £8.4m property investment deal.

London & Scottish Property Investment Management, the asset manager for office and industrial investment trust, Regional REIT, has acquired the Global Reach office scheme at Celtic Gateway Business.

The four-floor Grade A office building was built in 2008 and refurbished in 2017. It provides 61,641sq ft of accommodation across four floors and has 200 car parking spaces.

The property is fully let to Relx UK NFU Mutual Insurance, the British Diabetic Association, Active Quote Ltd, Source Insurance and Wilmott Dixon Construction.

Celtic Gateway Business Park is already home to several highprofile businesses. Total rent for the property is £803,000 (£13.02 sq ft) per annum, reflecting a net initial yield of 8.9%.

Last month London & Scottish bought a 68,500sq ft office in Swansea and a 22,300sq ft office in Bristol for £10.2m.

The purchases were financed by the disposal of a £32.7m warehouse and logistics site in Basildon, Essex.

Stephen Inglis, chief executive of London & Scottish, said: “The acquisition of this grade A flagship office property highlights our disciplined approach to capital management with recent disposal proceeds being promptly redeployed in property that provides an attractive yield.

“There is high demand for good office space outside city centres.

“The acquisition of Global Reach which is fully let to occupiers that provide online and essential services will further diversify our portfolio into sectors that have been very resilient during the Covid crisis.”

The investment has been sold on behalf of Cardiff SV by the Cardiff office of property advisory firm Knight Frank.