Cardiff’s record year for commercial property investment
INVESTMENT into commercial property in Cardiff reached record levels in 2017 at more than £400m, according to international real estate advisory firm Savills.
In 2016, investment into the city totalled £298m.
Savills’ research shows that investment volumes have been heavily skewed last year by the activity at the Central Square regeneration scheme which amounted to £224.7m.
In total, investment into the Cardiff office sector surpassed £350m, which was a record level. Prime yields for Cardiff office investments have fallen 75 basis points from the beginning of the year to 5.50% as strong investor interest has resulted in downward pressure.
The second-largest sector in terms of investment levels in 2017 was leisure, with investment reaching £43m. This sector was dominated by the £20.5m acquisition of Stadium Plaza by Naissance Capital Real Estate and the £22.1m purchase of the Clayton hotel by M&G Real Estate.
Ross Griffin, director of investment at Savills Cardiff, said: “Cardiff remains a popular investment destination, particularly for those looking to place their money into the regional office market. The development at Central Square has significantly boosted the volumes for this year, providing an attractive opportunity.
“Looking ahead to 2018, we expect to see continued activity from institutions on both the buy and sell side as they look for long-term income. Overseas capital will also be active, particularly for prime assets at attractive yields.”