City buildings sold as demand for offices rises
ONE OF the biggest buildings in the centre of Cardiff is under new ownership following a £6.72m property deal.
Golate House, which comprises two connecting buildings that front onto St Mary Street and Westgate Street, has been acquired in an offmarket deal by Kames Capital.
Current tenants in the scheme, that extends to 55,645 sq ft, include Brewdog, Betfred, CPS Group, Sonnovate and the National Probation Service.
Kames Capital, advised by V7 Asset Management, has acquired the building from 101 Asset Management.
Golate House, which generates an annual rental income of £610,000, is 88% let.
The building was recently rebranded for marketing purposes as 101 Cardiff.
It has been acquired for the Kames Property Income Fund, with a view towards improving income through active asset management - supported by capitalising on the opportunities created by the nearby Central Square regeneration scheme.
V7 has been retained as asset manager on the scheme.
Richard Peacock, co-fund manager of the Kames Property Income Fund, said: “With grade A rents in Cardiff city centre having risen to £25 per sq ft in the current cycle, we expect to see a similar uptick in rents for good secondary properties.
“Golate House presents the opportunity through a phased refurbishment to create an attractive product in an excellent location targeting value-conscious office occupiers.”
Matt Leach, partner at V7, said: “Located in the heart of Cardiff, Golate House is well positioned to capitalise on the improvements being seen nearby, notably the Central Square development, as well as benefit from the growing demand for office space in the city.
“Providing high-yielding offices in a core market, Golate House offers significant asset management opportunities in line with Kames’ investment strategy.”
The deal follows recent acquisitions by Kames of offices in Bristol and Slough, also advised by V7.
Mr Leach added: “This trio of buys highlights Kames’ targeting of assets that are well-positioned to capitalise on the opportunities presented in their respective markets, securing growth through strategic asset management.”
Kames Capital was advised by V7 Asset Management and Savills.
EJ Hales and Calan Retail represented 101 Asset Management.