New vistas open up for Newport
The tallest building in Newport has been acquired in a multi-million-pound deal. Chartist Tower in the centre of the city has been bought by expanding Cardiff-based property development firm Garrison Barclay Estates in a £6.5m deal.
The 15-storey building and its surrounding retail units – including a former BHS store – provides one of the biggest redevelopment opportunities in the city.
On a clear day the building affords spectacular views across the Severn Estuary and to the Sugar Loaf Mountain and beyond.
With the car-parking and ancillary space, the scheme could support a 200,000 sq ft development.
The current scheme provides 45,000 sq ft of office space and 75,000 sq ft of retail.
There are a number of small retail tenants, but the office element is empty.
Garrison Barclay Estates is currently in discussions with Newport Council over redevelopment options for the building.
The firm said it was too early to say what plans could emerge. However, a mixed-use regeneration scheme could see new retail, office and residential space developed, as well as potentially accommodating a hotel too.
Garrison Barclay Estates has acquired a long-term lease interest – extending to 250 years, so effectively an acquisition – in the building from a major pension fund. The undisclosed pension fund had in turn sublet the scheme to an international property company.
Garrison Barclay Estates earlier this year acquired the former Royal Mail sorting office, which extends to 50,000 sq ft, at Mill Street in the centre of Newport.
It is in discussions with Newport City Council to bring forward development plans for the site, which could see a new office and hotel venue for the city.
Ian Carter, development director at Garrison Barclay Estates, said: “We are extremely excited by the acquisition of Chartist Tower and the redevelopment opportunities that are now under consideration.
“Newport is a city with a long and proud history, which over the past couple of years has had a real resurgence.
“The construction of Friars Walk Shopping Centre, which is adjacent to the building, has seen the city centre become a destination again. As developers of Newport’s tallest building, we are looking forward to continuing our positive work with Newport City Council.”
Garrison Barclay Estates were advised on the deal by Rupert Thomas of Thomas Simon Solicitors.
JLL acted for the undisclosed pension fund that held the lease interest in Chartist Tower.
Justin Millett, director of capital markets at JLL, said: “The previous owners of the building have worked closely with Newport Council and Garrison Barclay Estates over a long period to extinguish their long leasehold interests and to explore what is possible for the building, so that the property is now released for redevelopment.
“Chartist Tower is arguably the most prominent landmark building in Newport city centre and this is the first stage of an exciting transformation.”
This latest acquisition by Garrison Barclay Estates has seen its assets grow by £25m in the past year.
This has seen it acquiring offices, industrial and residential sites across south Wales, most notably Landore Court in Cardiff, 3 Alexandra Gate, also in Cardiff, and the 100-acre Westfield Industrial Estate in Swansea.