Legal & General has signed a joint venture deal with Cardiff-based developer, Rightacres, to deliver the £400m Central Square masterplan scheme. It’s hoped the 12-acre regeneration project will create at least 10,000 jobs.
One of Wales’s prime development sites — located immediately to the north of Cardiff’s central train station — the redevelopment of Central Square will involve the construction of more than one-million square feet of premium office space, making it the focal point of the city’s Enterprise Zone.
The first phase of the mixed-use project includes the building of BBC Wales’ new 150,000 sq ft headquarters and One Central Square, a 135,000 sq ft office development that is already part pre-let to national law firm, Blake Morgan. Both blocks, to be followed by commercial, retail and residential schemes, are slated for completion early next year.
The contract was immediately praised by the Chancellor, George Osborne. “This is a major vote of confidence in the Welsh economy with a new partnership between Legal & General and Rightacres,” he said, claiming the multi-million pound project was “fantastic news” for working people across Wales.
Phil Bale, leader of Cardiff City Council, added: “Our city has a long established relationship with L&G, as one of the Cardiff capital region’s major employers, and this latest news represents an exciting new chapter which clearly demonstrates their confidence in the region.
“Central Square is a major priority for the council and which will create a fabulous gateway to Cardiff and the rest of Wales.” In 2013 the city council and Rightacres signed a development agreement to deliver the Central Square Masterplan.
Having committed £1.5bn to co-investing in critical regional urban regeneration projects outside London that support the UK growth, the Cardiff funding deal is the second project to be financed through L&G’s Regeneration Investment Organisation (RIO) partnership. Last month L&G announced it was backing a £400m regeneration scheme in East Leeds that will eventually deliver 13,000 new jobs and 7,000 homes in partnership with the Scarborough Group.
“Cardiff has been hugely successful in establishing itself as real player in the inward investment arena and Central Square represents the most exciting regeneration scheme due to come forward in Wales,” commented Laura Mason, director of direct investment at Legal & General Capital.
“Located in a prime city centre location, it is set to deliver major social and economic benefits, and proves the model for the public and private sectors working together in order to unlock real UK growth.
“We look forward to working closely with our new development partners and Cardiff City Council to deliver this major project and attract further investment to the area.”
Paul McCarthy is chief executive of family-owned Rightacres, which has already completed more than two-million square feet of commercial space in Cardiff. “Having a funding partner like Legal & General alongside us in Central Square will maintain the momentum we have been building around the scheme,” he said.
“L&G has a real understanding of the Cardiff market and they have demonstrated to us that they are able to react quickly to our proposals which will allow us to deliver the Central Square Masterplan over the next few years.”
