Stoford secures £59m Admiral investment
Stoford Developments, based in Birmingham, has secured an investment sale of £58.7m with a German fund manager for Admiral Group’s headquarters building in Cardiff.
The deal with fund manager Union Investment Real Estate GmbH will reflect a net initial yield of 5.85 per cent.
Stoford received planning permission in June to build the 11-storey, 220,000sq ft 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.
Stoford director Tony Nash said: "This is great news and confirms that the office market outside of London is resilient and offers occupiers remarkable value for money in the current market."
Admiral Group currently employs 4,600 people across South Wales, including 2,300 in Cardiff, and as such is one of the Wales’ biggest employers.
The move will enable the motor vehicle insurance specialist to consolidate its operations from four sites it already occupies in Cardiff, to the centrally located building.
Stoford Developments' chairman Chris Lea was named Property Personality of the Year at Insider's West Midlands Property Awards 2011.
