German fund manager Union Investment Real Estate has bought the new office headquarters due to be built for Admiral Group in Cardiff by Stoford Developments for £59 mln (EUR 70 mln). The deal will reflect a net initial yield of 5.85%.
German fund manager Union Investment Real Estate has bought the new office headquarters due to be built for Admiral Group in Cardiff by Stoford Developments for £59 mln (EUR 70 mln). The deal will reflect a net initial yield of 5.85%.
Stoford received planning permission in June to build the 11-storey, 220,000 sq ft (24,500 m2) scheme on the former David Street car park close to St David's Shopping Centre. It is the biggest pre-let in the Welsh capital's history. Construction is scheduled to start early next year with completion planned for 2014.
'Through this acquisition we reinforce the diversification of the UK portfolio within our European real estate fund,' said Karl-Joseph Hermanns-Engel, management board member at Union Investment Real Estate. 'Beyond the London office market we now see interesting investment opportunities in the regional markets, especially in project developments.'
Admiral Group is a motor vehicle insurance specialist which employs 4,600 people across South Wales, including 2,300 in Cardiff. The move will enable the company to consolidate its operations from four sites it already occupies in Cardiff.
Admiral Group's head of facilities Huw Llewellyn added: 'Securing the finance for our new headquarters has made this transaction possible and keeps us on track with our property and growth strategy for the group.'
