Strong interest shown in historic capital building
THERE is strong interest in the historic and up for sale Howells building in the centre of Cardiff.
The grade II listed building, which extends to 270,00 sq ft, was put on the market last month after confirmation that the investment vehicle that owned the property had gone into receivership.
The property had been acquired by Naissance Capital Real Estate on behalf of investors in 2016 for £37m, financed by a combination of equity investment and bank debt.
The property asset itself, which was owned Jersey-based Wallace Properties and not Naissance, was put into receivership.
Avison Young were appointed so called fixed charge receivers in hope of securing some return for the financiers of the acquisition.
Nathan Pask from Avison Young said; “We’re currently at due diligence stage and expect to be able to provide an update shortly. We have received a considerable amount of interest.”
Bristol-based property development firm Cubex has already confirmed its interest in acquiring the building, with long-terms plans to transform the grade two listed building into a new mixed-use development – with potential for a four star hotel, residential, office and leisure space, with scope too for some retail.
Business development director for Cubex Elgan Jones, who is originally from Cardiff, said: “From our perspective we have been monitoring the site for quite a period of time as a project target.
“So we are well advanced in the process for a scheme that provides a great opportunity to repurpose such an iconic building in the centre of Cardiff, building on our track record of similar projects such as Finzels Reach in Bristol, which was also acquired out of receivership.”
He said the Howells building couldn’t be developed in isolation, but that any scheme had to create a “sense of place” with each commercial element interconnected.
The receivership doesn’t impact on the status of the building’s main tenant in retailer House of Fraser. However, since its acquisition by Sports Direct tycoon Mike Ashley there remains a question mark over its future occupancy of the building.
A leaked report from consultants Gleeds in November said that the cost of renovating the building would be around £25m for basic repairs and up to £45m to incorporate a hotel and other developments.
So, whoever emerges as the new owner of the building located on a 1.7 acre site – although there is no guarantee that a deal will be done – they will go in with their eyes wide open at the required investment needed to bring into a state for redevelopment, or even just to stand still.