BUSINESS IN WALES INSIDE TODAY
THE formal marketing of the iconic Howells building in the centre of Cardiff has commenced with hopes a new owner can be found to rejuvenate the grade II listed site.
The company that owned the property, Jersey-based Wallace Properties, went into administration last year.
Property advisory firm Avison Young are marketing the Victorian built building after the firm’s Nathan Pask and Rosalind Goode were appointed joint fixed charged receivers late last year.
The formal marketing process was intended to start in March, but was put on hold during lockdown.
Prior to March, Avison Young had received around 200 initial inquiries for the freehold interest in the building, which was rebranded as House of Fraser in the 1970s.
The building extends to 275,000 sq ft, located on a prime 1.72 acre site. It is being offered for sale by informal tender.
Interested parties are being asked by Avison Young to submit offers in writing by 5pm on October 15.
Bristol-based property development firm Cubex has already confirmed it will submit a formal bid with plans to transform the building into a mixed-use scheme providing office, leisure and residential space, as well as potentially a four-star hotel.
House of Fraser, now part of Sports Direct International plc, continues to trade within the building, currently occupying 227,000 sq ft.
The building does require significant investment.
Tom Merrifield, of Avison Young in Cardiff, said: “This is a landmark building for Cardiff. Grade II listed, it is in the heart of the city’s retail district. Cardiff is undergoing a transformation with a raft of inspirational developments, creating a renewed sense of place.
“The opportunity that this site presents for the city with a forwardthinking developer who appreciates the importance of sensitive restoration is immense, bringing continued rejuvenation to this part of Cardiff.”
The real estate adviser – which has successfully sold heritage buildings including the Old War Office in Whitehall, and the 18th century Royal National Hospital for Rheumatic Diseases in Bath, is optimistic a buyer will be found.
Mr Merrifield said: “We’re looking for a developer who can respect the heritage of the building while bringing it back to life. That may include retail, leisure or residential with the appropriate planning consent.”
“We received an encouraging number of initial enquiries prior to lockdown – more than 200 – and we expect a strong interest again with formal marketing now under way.
“The property has the benefit of permission for change of use within the existing buildings, however it will be up to the purchaser to develop their plans on how this property will be redeveloped and who the potential occupiers will be.
“No doubt they will pick up the dialogue with a number of organisations, including those who previously expressed an interest in this property and location.”
Wallace Properties Ltd began implementing redevelopment plans for the property before entering administration.
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, via Wallace, itself and not Naissance was put into receivership.