Capital Tower, Cardiff’s tallest office building, has been sold for £25 million.
The 25-storey building has been sold by Topland to Trinova Real Estate in a transaction reflecting a net initial yield of 7.5%.
Having originally acquired the building in 2012. Topland has recently undertaken a multi-million pound refurbishment including the addition of a new reception and coffee shop, new high speed lifts and comprehensive refurbishment of 16 of the upper floors.
Following the refurbishment, the 124,375 sq ft building is now 98% let to variety of quality occupiers including the Secretary of State, Admiral Insurance, the AA, Allianz, Dolmans Solicitors and The Law Society.
William Davies, director of asset management at Topland said: “Capital Tower has been a great example of how our experience and resources are able to reposition an asset, turning it from a building in decline into a thriving, attractive building with near full occupancy. We are looking for more assets on which to pursue this strategy.”
Gareth Lloyd, partner in the Capital Markets team of Knight Frank in Cardiff, said: “The refurbishment has created office space that now competes with the best in the city, and more than a dozen new tenants have been attracted since the start of last year.
“Over recent years Cardiff has cemented its position as a major regional centre in the UK, which has resulted in increased investment interest from both domestic and international sources. We capitalised on this here with more than 10 inspections of the building from potential purchasers, creating a highly competitive bidding environment which enabled the end result to be achieved.”
Winston Luk of purchaser Trinova Real Estate commented: “We are delighted to have completed on the acquisition of Capital Tower. The property has been significantly upgraded by the seller to an attractive standard and we plan on continuing the repositioning of the asset into one of Cardiff’s most high-profile office assets. We are excited by the emergence of the capital’s technology sector and hope to provide an exciting and dynamic product to the city as well as providing some of the best views in Cardiff.”
David Mullins of purchaser’s agent Fletcher Morgan added: “The fast moving Cardiff office market has meant quality office investment stock like Capital Tower is so hard to buy. We are delighted to have made this acquisition on behalf of Trinova for one of Cardiff’s top trophy buildings in an unrivalled central office core location. We are very excited about Trinova’s plans going forward for the building.”
Knight Frank advised Topland while the purchaser, Trinova Real Estate, was represented by Fletcher Morgan.
