DTZ, part of UGL Services, part of UGL services, a division of UGL Limited (ASX: UGL), acting on behalf of DTZ Investment Management, has secured the sale of Wales’ tallest building, Capital Tower and Friary House in Cardiff for £12.35m to the Topland Group.
Located in the heart of Cardiff city centre the buildings sit within the core office and leisure district neighbouring the Hilton Hotel and close to the Millennium Stadium, Cardiff University and St David’s Shopping Centre. The high profile buildings provide panoramic views of the city and beyond, as well as an accessible location and flexible open plan floor plates.
Capital Tower and Friary House comprise over 190,000 sq ft of predominantly office space with additional leisure and a multi-storey car park. The buildings are 94% let to tenants including Admiral Insurance (home to their current headquarters), Tiger Tiger, The Secretary of State, The Law Society and Hilton Hotel. Over half the income is secured to Admiral Insurance for a further circa. 2.5 years until their planned move to a new headquarters building.
Nick Allan, Senior Investment Director at DTZ who led the sale commented: “This is the most significant and high profile investment transaction within Cardiff this year and achieved in very challenging market conditions for secondary office buildings. The buildings provide many opportunities in the future for redevelopment and/or major refurbishment. The buildings, views and location are clearly a major attraction for both occupiers and investors and we are delighted to have secured the sale to Topland Group within three weeks of agreeing terms.”
Clive Bush, Managing Director – Operations at Topland Group said “We are delighted to have completed this purchase which will provide us with a number of active asset management opportunities which will be worked up by our in house management team. Our ability to purchase with cash has again proved a decisive factor.”
Powell Lloyd acted on behalf of Topland.