Fidelity Worldwide Investment acquired Fusion Point 2, a multi-let Grade A office in the centre of Cardiff for £11.2m reflecting a net initial yield of 8.6%.
Tenants are Deloitte LLP, Balfour Beatty, Involegal LLP and ACAS with a weighted average lease to expiry of 7.9 years. Eversheds provided legal advice and Powell Lloyd acted as investment agency advisor. The building was purchased directly from the developer, Fusion Point Development Ltd, a joint venture between Robert Hitchins Ltd and Landmark Cardiff Ltd, who were advised by Knight Frank.
Rob Jones, Partner and Head of Investment for Knight Frank, Cardiff commented: “This successful sale reflects the growing interest by institutional investors for good quality multi let office investments in the major regional markets. In particular it shows the growing confidence that investors have in Cardiff, Wales’ capital city, where they are buying into the vision of Cardiff’s potential for further growth.”
Dan Evans, Director at Powell Lloyd, Cardiff who advised Fidelity on their purchase commented: “The transaction confirms to the wider UK market that Cardiff and Wales can offer Grade A investments at an attractive yield discount to London and the South East. The building has an excellent specification and is situated in very much an improving part of the city, which will benefit from both existing and proposed developments nearby. Fidelity have shown confidence in the region by investing early in the market upturn and I am sure this asset will perform very well for them”.
