Aberdeen Asset Management, advised by Jones Lang LaSalle, has sold Hodge House, a landmark listed building in Cardiff city centre to Legal & General Property (“LGP”), advised by Knight Frank, for £18.8 million, representing a net initial yield of 9%.
Situated on St Marys Street in the centre of Cardiff, Hodge House, extending to approximately 145,000 sq ft, comprises a seven-storey Grade II listed building. Redeveloped to a high standard, retail and leisure units occupy the ground and basement levels, whilst office space is arranged over the upper six floors. The office accommodation is let to Hugh James Solicitors and Serco, and the multi-let asset attracts a total passing annual rental of £1,796,865.
Robert McDonnell, associate director of Aberdeen Asset Management, said: “Having proactively asset managed this building, we were very pleased to achieve full occupancy. The upturn in the regional investment market provided an opportunity for a disposal and we are delighted with the performance of this asset.”
Matt Jarvis, fund manager to Legal & General’s UK Property Trust, said: “Following our purchase of Redcliff Quay in Bristol late last year, Hodge House continues one of the UK Property Trust’s strategic themes of acquiring high yielding assets in fundamentally strong locations. We believe the asset offers value in the current market and that the management initiatives we have identified are realistic and achievable. We look forward to working with the tenants to help achieve them.”
Justin Millett, head of investment agency, Jones Lang LaSalle Cardiff, commented: “Good quality assets in the regional markets provide excellent value for investors who are increasingly looking for opportunities outside of London and South East of England. We were delighted to have been involved in the refurbishment, letting and end investment sale for this landmark office building.”
Gareth Lloyd, investment associate at Knight Frank in Cardiff advised LGP, and commented: “Hodge House is a Cardiff landmark and its sale provided a compelling opportunity for investors given its high profile position in the heart of the city centre, together with its high-quality tenants and attractive yield profile. The purchase represents one of the largest office investment deals in Cardiff in recent years, and further demonstrates the improved appetite from investors for commercial investments in the regions.”