US property firm looks to snap up Cardiff Waterside scheme

AN AMERICAN property investment firm is close to buying one of Wales’ leading office schemes.

Global Mutual is in detailed talks with Aviva over its Cardiff Waterside office estate in Cardiff Bay, in a sign of the city’s growing attractiveness to institutional property investors.

Cardiff Waterside, which extends to 11.8 acres, currently provides just over 400,000 sq ft of office space across 11 buildings - including 3 Assembly Square, whose tenants include ITV Wales, KPMG and Gambit Corporate Finance.

Cardiff Waterside is currently more than 90% let to 31 tenants. The property estate also includes the landmark standalone UK headquarters of export credit insurance firm Atradius.

The scheme is expected to be sold for around £86m, which is more than the asking price.

Cardiff Waterside was initially put up for sale by Aviva in 2012, but was then withdrawn.

In September it was brought back to market, in a sales process overseen by the Cardiff office of property advisory firm Knight Frank.

It is understood that it attracted strong interest from global investors who were invited to submit best bids. Having come through a second round, Global Mutual has emerged as Aviva’s preferred bidder and a final deal could be confirmed over the next few weeks.

Aviva’s tenants currently generate an annual rental income of £7.4m.

The up-for-sale estate includes two sites with planning consent for more than 300,000 sq ft of new offices, but doesn’t include the land next to the Senedd, which is also earmarked for a major office scheme.

Cushman & Wakefield is acting for Global Mutual.

Cardiff Waterside also includes a 1,238-space multi-storey car park.