Senedd Commission puts out feelers for new office location
THE Senedd is seeking market interest for a 110,000sq ft office building in Cardiff Bay.
The corporate body for the Senedd, the Senedd Commission, has issued a prior investment notice (Pin) for a potential new location, although it has not ruled out continuing to operate out of the exiting site of Ty Hywel.
The 1990s red brick building, next to the Senedd debating chamber, is home to Senedd Commission staff, Senedd Members and the Welsh Government.
Other options could see a move to an existing building close by or a dedicated new-build development.
The Pin notice outlines a requirement for: “Provision of office accommodation by way of acquisition of the freehold or long leasehold from 2032, with long-term security of tenure.”
It adds: “The accommodation should be circa 11,000sq metres (110,000sq ft) with at least 90% of its capacity in close proximity to the existing Senedd building. The accommodation must allow for all required direct infrastructure links between the two buildings. Be in sufficient close proximity to, and provide for, the secure free flow of Senedd Members and staff between this accommodation and the Senedd building to allow members to effectively conduct and partake in Senedd business in the debating chamber.”
Any location will need to be able to house 900 staff and accommodate an increase in the number of MSs and associated staff.
The commission could opt to remain in Ty Hywel, with its walkthrough connection to the Senedd debating chamber. This would require investment from its landlord to improve the building’s emission and energy efficiency. This would see an uplift in rent, currently around £2m a year, on a new long-term lease. The current lease with landlord Equitix expires in 2032.
The Senedd could opt to acquire the freehold interest in the building. Over the long-term any acquisition and building investment costs would be recouped by not having to pay rent.
If it opted for a new location, there is a vacant land development site adjacent to the Senedd chamber building. Cardiff-based property development firm Rightacres acquired two connected wasteland parcels of land (known as 1 and 2 Assembly Square) from financial services giant Aviva last year.
The value of the deal was not disclosed, but is understood to have been in the region of £4m.
The funding for a new building, at a cost of tens of millions of pounds, would be financed by an institutional investor, potentially a pension fund. The Senedd would then enter into a long-term lease with a rent north of £20 per sq ft. While more expensive than the current rent at Ty Hywel, it would be a far more energy-efficient building, so providing potential for a cost-neutral position. That would then leave an empty Ty Hywel (formerly known as Crickhowell House), which in the current market could find it a challenge to find new tenants, while re-purposing it for residential would be costly.
There is also a two-acre land site across from Ty Hywel owned by Rightacres at 6 Pierhead Street, which also could be a potential site for a new building.
The Senedd could also potentially approve a new building close by at Porth Teigr.
The development site is owned by the Welsh Government, after acquiring it several years ago from Igloo, a sustainable real estate fund managed by Aviva. The Welsh Government is now looking to develop a masterplan for its 30-acre site.
Other new-build options include at Atlantic Wharf where Cardiff council has long-term plans for a major mixed-use development. A funding deal for an indoor arena at the scheme has been signed off with Live Nation.
As part of a phased wider development, the existing Red Dragon Centre will make way for a proposed mix-use development providing new homes, offices, hotels, food and beverage and leisure facilities.
Following a marketing process, which attracted two bids, Aviva Capital Consortium (ACC) has secured preferred offer status for the 11-acre site.
The council is now working with ACC to develop its proposal and to prepare an option agreement that will be reported back to Cardiff council’s cabinet for approval this summer.
While no decision has yet to be made the council is expected to leave its existing County Hall building at Atlantic Wharf for a smaller building, which would free up more development land, including potentially for a Senedd building.
The Senedd Commission though could rule out Atlantic Wharf, while relatively nearby, on its distance away from the Senedd chamber.
Existing building options include office space at the back of the Wales Millennium Centre, opposite Ty Hywel, where the freehold is owned by Cardiff council.
Another option for a new Senedd building is the existing Scott Harbour building next to Ty Hywel.
Subject to planning consent, the building is scheduled to be acquired from owner Global Mutual by Rightacres
with plans to transform the now empty office building into a serviced and build-to-rent apartment scheme.
However, while it cannot be ruled out, it is unlikely those advanced plans will be abandoned in favour of looking to house a Senedd building in Scott Harbour.
A Senedd Commission spokesperson said: “The current lease on Ty Hywel, which accommodates members and their staff in Cardiff Bay, expires in 2032.
“Work is under way by Senedd Commission officials to ensure that suitable office space is available beyond this point.
“A thorough procurement process will now take place which is focused on sustainability and securing the best value-for-money in the long term, in line with best practice.”