The asset comprised an Industrial Estate of 125,000 sq.ft. on a seven acre site on the edge of the City Centre and close to the mainline station. The Estate was located adjacent to Callaghan Square, Cardiff’s prime office location.
The Estate occupied by some 50 tenants and produced an income of circa £500,000 pax.
At the time of purchase we always believed the industrial use to be non-conforming as adjacent properties were occupied by residential and leisure uses.
Extensive discussions were held with Tesco to provide a relocation of one of their City Centre stores to provide 45,000 sqft of sales. Ultimately Tesco decided it was more cost effective to remain in their existing unit. We then progressed a Planning Consent for 400 private apartments, 175 affordable units and 100,000 sq ft of commercial space.
The investment was originally acquired as part of a larger portfolio at an allocated price of £5.5m. The site with planning was sold with the benefit of planning for £11.35m.