Property developer Rightacres has revealed £25m plans to transform a virtually empty office scheme in Cardiff Bay into serviced and build to rent (BTR) apartments.
The Cardiff company, which is behind the now almost fully developed Central Square office led scheme in the centre of Cardiff and the nearby and emerging waterfront Central Quay mixed-use development at the former Brains brewery site, plans to repurpose the Scott Harbour scheme to provide 30 service apartments and 70 build to rent properties.
Subject to planning consent work on the scheme is expected to start in the third quarter of this year with the first apartments ready in late 2024. Scott Harbour consists of a number of separate buildings including Emperor House and Discovery House.
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If planning is approved by Cardiff Council Rightacres will acquire the scheme, which extends in 90,000sq ft, from Global Mutual.
The asset currently forms part of the American firm’s wider Cardiff Waterside property portfolio in Cardiff Bay.
As well as apartments, for which the serviced accommodation will be marketed from one night to six months stays with the BTR element having longer durations, the scheme will also provide 10,000 sq ft of co-working space, a cafe, a roof top terrace a gym and Peloton studio.
The service apartments will by aimed at those working in the creative industries sector due to the close proximity of the production studios of the BBC and Bad Wolf.
The development, which will see Rightacres stripping the buildings back to their shells, will also provide a rehearsal room and screening studio for creative industry occupiers.
Sott Harbour was once home to a range of office occupiers including Lloyds and Knight Frank.
The scheme’s remaining office occupier is law firm Clarke Willmott which has identified a new location in the city.
Scott Harbour was originally built for property development firm Grosvenor Waterside by Balfour Beatty in 1996.
With the office market, particularly ageing older stock, being impacted by uncertainty over the long-term space requirements of firms and organisations with the establishment of hybrid working, developers and investors are being increasingly attracted to the BTR market, whether with new schemes or transforming existing office buildings.
For annuity funds they offer a secure rental incomes with low default rates.
Rightacres is no stranger to the residential market having just completed a 300-plus BTR scheme for L&G Homes at the Interchange scheme at Central Square.
The development will also provide a new 120,000sq ft headquarters for L&G’s financial services operations in Cardiff – currently located at the Knox Court and Brunel House office buildings – and a new bus station operated by Transport for Wales.
At Rightacres’ Central Quay development work is under way on the first phase of a 700-plus BTR scheme for L&G – which acquired land for the project in what is understood to have been a £20m deal.
The entire project is expected to be completed in the spring of 2027.
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