Five years on, what is being planned for this prime site?
It’s one of the prime development sites remaining in the centre of Cardiff, but you will not find any cranes dominating the skyline with a hive of construction activity below, at the south side of Callaghan Square.
Despite being acquired by the Welsh Government in 2013 for just over £7m, the near five-acre site remains a wasteland.
And with two industrial sheds, which the Welsh Government owns next to the land, it provides a development opportunity of around six acres.
Ironically, the Welsh Government’s justification for acquiring the site was that it wanted to bring development activity forward – even though the previous owner, property development firm MEPC, had outlined planning consent for 500,000sq ft of new offices.
Agents for the land, acting on behalf of the Welsh Government, are the Cardiff office of property advisory firm Knight Frank, who declined to comment.
However, the Welsh Government, said it is currently talking to a number of interested parties for the land.
But to avoid some previous criticism of its arm’s length body the Regeneration Investment Fund for Wales, it is hoped that the land will be widely advertised to help realise the best possible return for the taxpayer – even if a deal is eventually done with another public sector organisation
A decision on the advertising of the site has yet to be taken, but it is understood that it will be considered shortly by Business Secretary Ken Skates.
A Welsh Government spokesman said: “We are aware of interest in the Callaghan Square site from a number of parties and hope to provide an update in the coming weeks and months.
“As ever our focus is on obtaining the best outcomes from the sale of the site and its subsequent development. ”
While there are some challenges with the fact there is a major electricity power line and drainage pipe running underneath the land – which is common in many city centre development sites – due to its prime location it should spark significant interest.
But what could that interest include? ■ A public sector hub Bringing together public sector functions and services under one roof is not a new concept. However, it has been accelerated
in Cardiff by the Government Property Unit of the UK Government, with a public sector hub, extending to 270,000sq ft, now under construction at the Central Square in the centre of the city.
The building will serve as an HQ for HMRC in Wales, but will also be occupied by the Wales Office.
Cardiff council is also looking to drive other public sector hub type projects in the city.
And this is not just about rationalising its own considerable office estate, but seeking to share space with other public sector organisations.
And the land at Callaghan Square, being so close to Cardiff Central train station and a new bus station, for which work at the Interchange scheme at Central Square will start shortly, would be an ideal location as a “public-facing” hub.
And if Cardiff’s existing County Hall headquarters in Cardiff Bay makes way for the authority’s planned 15,000-seater indoor arena, that could strengthen the rationale and business case for it acquiring the land at Callaghan Square, to kick start another major public sector hub project in Cardiff.
The financing of the new indoor arena could include a naming rights contribution and potentially the council seeking long-term and low interesting bearing finance from the UK Government’s Public Works Loan Board.
And any repayments could be offset by an indoor arena operator partner providing a guaranteed rental income, as well as that from commercial units leased inside the arena.
But Cardiff council is not seeking backing for an indoor arena from the £1.2bn City Deal for the Cardiff Capital Region - which is made up of the 10 local authorities in south east Wales.
Instead the big ticket project from the City Deal for the capital has already been agreed with a £40m contribution to support the much needed redevelopment of Cardiff Central train station.
In fairness to the council and its leader Huw Thomas, it recognises that improvements to the station will have far wider benefits for the city region than an indoor arena.
The station needs to be upgraded to realise the benefits of electrification of the core Valley Lines, which will see a big rise in passenger numbers on the network with faster and more frequent rail services. ■ School of Technologies Cardiff Metropolitan University had identified the land at Callaghan Square as a possible location for its proposed new School of Technologies campus, that could eventually be home to 2,000 students by 2024.
However, the frontrunner is now the proposed Central Quay regeneration scheme on the site of the existing Brains Brewery.
The university will have to consider whether to finance a new campus from its own finances, which could include using borrowing powers, or taking a long-term lease. ■ Office developments With record lettings of grade A office space in Cardiff last year, the city needs a constant supply of new office stock to meet the demands not just of indigenous firms looking to expand, but also of financial and professional services firms seeking to bring new investment projects to the capital.
Yes, there is new office space soon to come to market at the Capital Quarter regeneration scheme from developer JR Smart and, subject to planning consent, Rightacres Property should see the first phase of its Central Quay scheme completed in the summer of 2020 with a 200,000sq ft office scheme.
However, this is arguably not going to be enough.
So, if put out to market, the land at Callaghan Square could attract significant interest from property developers looking to bring forward major new office schemes.
Eventually Centre Quay could see up 2.5 million sq ft of new office, leisure and residential space built.